Both political parties have contributed significantly to the national debt

Photo: Alex Brandon/Associated Press

By Chris Panaro

As of August 31, 2024, the United States' total public debt stands at an astronomical $35.3 trillion. This includes all federal debt held by individuals, corporations, foreign governments, and other entities outside the U.S. government as well as intragovernmental holdings such as securities held by government trust funds, special funds, and federal financing entities. This marks a significant rise from the $1 trillion recorded in 1981 when Ronald Reagan took office.

The Congressional Budget Office (CBO) projects that interest payments will total $892 billion in fiscal year 2024 and rise rapidly throughout the next decade — climbing from $1 trillion in 2025 to $1.7 trillion in 2034. In total, net interest payments will total $12.9 trillion over the next decade.

The journey of national debt accumulation reflects not only the policies of various administrations but also the economic conditions they faced. Below, we briefly explore the contributions made by each president to the national debt since Reagan, providing insights into the fiscal challenges and decisions that have shaped the nation’s financial trajectory.

Ronald Reagan (R) (1981-1989)

Reagan inherited a debt of $998 billion when he took office. By the time he left in 1989, the national debt had ballooned to $2.86 trillion, an increase of $1.86 trillion. This reflects an average annual increase of $232.75 billion, driven largely by his administration's significant defense spending and tax cuts, which contributed to deficits throughout his tenure.

George H.W. Bush (R) (1989-1993)

Bush Sr. inherited a national debt of $2.86 trillion and added $1.55 trillion over his four-year term, ending with a national debt of $4.41 trillion. His fiscal policies, heavily impacted by the economic recession and the Gulf War, led to an average annual increase of $387.5 billion in debt.

Bill Clinton (D) (1993-2001)

Clinton's administration saw the national debt increase by $1.4 trillion, from $4.41 trillion to $5.81 trillion. His tenure saw an average annual debt increase of $175 billion. Clinton benefited from the tech boom and introduced fiscal policies that reduced deficits, leading to budget surpluses in the late 1990s.

George W. Bush (R) (2001-2009)

Bush Jr. presided over a massive increase in national debt, which rose by $6.1 trillion, from $5.81 trillion to $11.91 trillion. This period saw an average annual increase of $762.5 billion due to the costs of the wars in Iraq and Afghanistan, tax cuts, and efforts to combat the financial crisis of 2008.

Barack Obama (D) (2009-2017)

Obama inherited a severe economic recession and a national debt of $11.91 trillion. By the time he left office, the debt had surged to $20.24 trillion, an increase of $8.33 trillion. With an average annual increase of $1.04 trillion, much of this rise can be attributed to stimulus spending in response to the Great Recession and ongoing military engagements.

Donald Trump (R) (2017-2021)

Under Trump, the national debt rose by $8.19 trillion, from $20.24 trillion to $28.43 trillion, reflecting an average annual increase of $2.05 trillion. His administration's tax cuts and pandemic-related spending drove a significant portion of this increase.

Joe Biden (D) (2021-2025)

As of August 2024, Biden's administration has added $6.87 trillion to the national debt, bringing the total to $35.3 trillion. This averages an annual increase of $1.72 trillion, influenced by ongoing pandemic recovery spending and investments in infrastructure and social programs.

From 1981 to 2024, both major political parties have overseen significant increases in national debt. Republicans have added approximately $17.7 trillion to the debt, while Democrats have contributed $16.6 trillion. This nearly even split reflects the challenges each administration faced, irrespective of party lines, as economic recessions, military engagements, and global crises necessitated increased borrowing.

As the U.S. debt continues to grow, so too does the debate over the sustainability of these fiscal practices. Both political parties have contributed significantly to the national debt, often in response to crises beyond their control. Moving forward, balancing fiscal responsibility with necessary government spending will remain one of the central challenges for future administrations. With national debt at record levels, it is crucial to assess the economic consequences and potential solutions for ensuring long-term financial stability.