Interest on the Federal Debt
As of July 25, 2005, the federal debt stood at $7,868.6 billion. The interest expense for the fiscal year 2004-2005 (October 1, 2004 through June 30, 2005) stands at $299 billion -- a bit more than $100 billion less than the U.S. defense budget. What I find remarkable is that for the current fiscal year this interest expense exceeds the current budget deficit of $249.8 billion. While the deficit numbers are less than a year ago and improving, the interest expense is much greater. One economic problem facing the U.S. into the near future is not the size of these deficits but the growing interest payment on the existing debt. Right now every woman, man and child in the U.S. (current population = 296.7 million) must pay roughly $1,000 in taxes each year to accomodate this interest burden.