Why the U.S. Is Spending $870B on Interest Payments in 2024

The U.S. is projected to spend a historic $870 billion paying interest on the national debt this year. That’s even more than the defense budget. I’ll explain just how high these interest payments are expected to rise, how interest on debt fits into the national budget, and what it could mean for markets and regular taxpayers.

0:00 Interest on the U.S. national debt
0:41 Interest payments projected to rise
1:16 U.S. budget
1:56 Why this matters

I’m Dion Rabouin, a WSJ reporter covering markets and the economy. I’ll be diving into all things finance, from the popular and well-known — like crypto and stocks — to the complex and intricate — like leveraged loans, derivatives and private equity. Subscribe to join me as I take a deep dive into what’s making money move and why it matters.

#Interest #Debt #DionRabouin

[Jacoblikesyoutube]

It's amazing how I've not heard almost anything about this in the news I consume. Thanks Dion

[xavier_lucas]

Stocks are trading like the Fed already cut rates

[Shaq]

Dion always bringing us the important stuff no one is talking about. Great reporting!

[karmaandkerosene_music]

America needs to get a part time job and start eating rice and beans.





Instead we finance two wars we aren't even fighting in.

[City_Hunter]

The gov needs to watch one of those you tube videos on how to pay this off in a year

[raoulbakker]

I know this is your job but thank you for the quality content!

[TheNoobTker]

Let’s not forget this is good for savers who have their money in money market funds or short term government bonds. Or for the largest deposit banks like JPM/CITI who are capturing the spread on everyone else.

[usarmycol]

It's not even right number now. Interest Payments on US National Debt will shatter  $1, 140, 000, 000, 000 this year. Eating 76% of All Income Taxes Collected

[evjq]

Great video! Though I miss music quotes at the end of the videos

[tylerdurden]

So, we need to print more money to be able to pay the debt. Printers go

[dd]

This means that interest payments alone could consume 100% of our entire federal budget for fiscal year 2034. Correct?

Assuming our federal budget for 2034 is around 6 Trillion dollars.

If so, that’s horrifying. Adding to that, Social Security running out of money in the next 10 years. Wowza. Perfect storm.

[SimonMester]

There is a reason people are more and more realize that money is just a collective delusion, and lose confidence. Since Covid especially. A lot of folk look at money very different now.

[elbozo]

Would’ve been nice to see interest payments in real terms rather than nominal… other than that great explainer

[waynemay]

It's the same here in the UK - spend, spend, spend...

[nealamesbury]

Why would they intentionally destroy the country, isnt that the question. ? They used to say they border situation was incompetence, now we accept it is intentional. - same with spending and the debt.the obvious question is why do they want to hurt the country? Isnt it obvious to everyone yet- and still the question isnt raised. ?

[themissingtile]

We're doomed! (in my C-3PO voice)

[PeacefulWorld-zrod]

Can the GOV sustain the current spending without tax increases?

[ahmedalsharman]

They been talking about the National debt for the last *30 years* , it doesn't really matters as the debt is dominated by US dollars, which is the global currency reserves .. so it doesn't matters

[richsmobileautorepair]

Well those we pay the interest to love it we're enhancing that country or whoever it is

[eddiekulp]

When interesr payment reaches total govt yearly budget then we might have a problem