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Good Question: How did the U.S. debt get so high?

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Good Question: How did the U.S. debt get so high?


MINNEAPOLIS — If you wince when look at your monthly credit card bill, you might not believe what the U.S. government has racked up.

The national debt now tops more than $34 trillion. That’s a new record difficult to comprehend — and there are no signs of slowing it down.

How did the debt get so high? And will it need to be paid off? 

Well, that goal might be wishful thinking.

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The debt is one of the rare times people have a chance to use the word “trillion” in a sentence without exaggerating some number.

It stands at $34,009,690,055,595 as of Jan. 9. Elon Musk, the world’s richest person, is worth more than $241 billion. You’d need at least 140 of him to equal the debt.

“The first thing is about one-fourth to one-third of it doesn’t count,” said Christopher Phelan, an economics professor at the University of Minnesota. “It’s debt that’s held by another part of the government. So, it would be like the wife owing the husband money. It doesn’t affect the household. But the rest of it is still a huge number.”

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How did the U.S. accrue such a huge debt? One of the main culprits is consistently overspending. When the federal government spends more than its budget, it creates a deficit. In the fiscal year of 2023, it spent about $381 billion more than it collected in revenues.

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To pay that deficit, the government borrows money. That can happen by selling marketable securities like treasury bonds. The national debt is the accumulation of the borrowed money, plus interest.

“Right now the federal government is spending 1.5 times as much as its taking in. So, an analogy that I’d like to give is imagine that a couple is making $80,000 between the two of them and spending $120,000 a year,” said Phelan. We asked him if the U.S. is the equivalent of a person who only makes the minimum payments on a credit card. Phelan took it a step further saying, “The U.S. is like somebody who makes less than the minimum payment on their credit card.”

The country was literally built on debt. It was $75 million in the red after the Revolutionary War thanks to loans from investors and countries like France. 

The Civil War led a to a huge spike, raising the debt from $65 million in 1860 to nearly $3 billion in 1865 when the war ended. Costly wars proved to be a theme in our nation’s history. The debt was at $49 billion right before the U.S. entered World War II. When the war ended, it was $260 billion. It began rising at a fast rate in the 1980’s and was accelerated through events like the Iraq Wars and the 2008 Great Recession. Most recently, the debt made another big jump thanks to the pandemic with the federal government spending significantly more than it took in to keep the country running.

MORE NEWS: All-women, racially diverse St. Paul City Council sworn in Tuesday

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Who do we owe the money to? “Mostly ourselves,” said Phelan. “A lot of pension funds own government debt, money market funds own government debt and then people own those money market funds.” The U.S. also has debts to other countries.

Where does the money come from that would go towards paying off the debt? It ultimately comes down to the U.S. taxpayers. That means in order to pay it off, or at least make a larger dent in the debt, the federal government would have to raise taxes and cut spending. “The problem is way bigger than if we just cut foreign aid,” said Phelan.

With such a high debt, how does the country function? Phelan said it comes down to the debt to gross domestic product (GDP) ratio. That equation shows a country’s ability to pay down its debt. “This ratio is considered a better indicator of a country’s fiscal situation than just the national debt number because it shows the burden of debt relative to the country’s total economic output and therefore its ability to repay it,” according to the U.S. Treasury’s website. 

The current ratio in the U.S. is about 123 percent as of Sept. 2023. Two decades earlier in 2003, it was down to 60 percet. According to CEIC, the highest the ratio ever reached in the U.S. was 130.6 percent in March 2021, roughly one year into the pandemic.

While the ratio remains high for the country, Phelan said other countries are worse off, yet continue to run. Japan has a debt to GDP ratio that’s well over 200 percent, but that doesn’t mean countries should comfortably operate at those levels for a long time. “There is a limit, and it’s determined by when potential bond buyers say ‘I don’t think I’m gonna get the money back.’ And they demand a huge interest rate for risk of not getting the money back,” said Phelan, adding how that concern hasn’t happened yet for the U.S.

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Minnesota

Minnesota Representative Ilhan Omar attacked during town hall meeting

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Minnesota Representative Ilhan Omar attacked during town hall meeting


BREAKING,

Omar was sprayed with an unknown substance during the attack by a man, who was then tackled to the ground.

Minnesota Representative Ilhan Omar has been attacked by a man while hosting a town hall meeting in Minneapolis.

Omar was sprayed with an unknown substance by the man before he was tackled to the ground on Tuesday.

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The Reuters news agency said that Omar was not injured in the attack, and authorities have not said what substance was sprayed or whether charges have been filed against the assailant.

The audience cheered as the man was pinned down and his arms were tied behind his back. In a video clip of the incident, someone in the crowd can be heard saying, “Oh my god, he sprayed something on her”, the Associated Press news agency reported.

Omar continued the town hall after the man was ushered out of the room.

Just before the attack, she had called for the abolishment of the US Immigration and Customs Enforcement (ICE) agency and for Department of Homeland Security Secretary Kristi Noem to resign.

“ICE cannot be reformed,” Omar said.

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A man shouts at U.S. Representative Ilhan Omar (D-MN) after spraying her, during a town hall meeting days after a man identified as Alex Pretti was fatally shot by federal immigration agents trying to detain him, in Minneapolis, Minnesota, U.S., January 27, 2026 in a still image from video. REUTERS/Maria Alejandra Cardona
A man shouts at US Representative Ilhan Omar after spraying her with a substance during a town hall meeting in Minneapolis on Tuesday, just days after Alex Pretti was shot dead by federal immigration agents in the city, in Minnesota [Screengrab: Maria Alejandra Cardona/Reuters]

Minneapolis police did not immediately respond to requests for comment on the incident and whether anyone was arrested.

The White House did not immediately respond to a message from the AP seeking comment.

This is a breaking news story. More to follow soon…



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Trump makes changes on the ground in Minnesota and doctors break with the CDC: Morning Rundown

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Trump makes changes on the ground in Minnesota and doctors break with the CDC: Morning Rundown


In today’s newsletter: Some Trump administration advisers and allies say the optics of the immigration operation in Minneapolis have led Trump to make some changes. An influential group of doctors has split with the CDC over shot recommendations for children. And the downfall of China’s top general could have implications for Taiwan.

Here’s what to know today.

Trump reshuffles his Minnesota operation after backlash from second fatal shooting

President Donald Trump has made significant changes of leadership in the Minnesota immigration operations after the fatal shooting of Alex Pretti, according to administration officials and allies.

“The visuals were not playing well. He understands TV. … He saw it for himself,” said a Republican lawmaker who was granted anonymity to speak candidly.

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This is Morning Rundown, a weekday newsletter to start your day. Sign up here to get it in your inbox.

Saturday’s shooting has prompted a leadership shakeup, a reduction of agents in the city, a reset with key Democratic officials in the state, and an attempt to distance the president from some of the more extreme comments from some of his top advisers.

More than 3,000 federal agents have been sent to Minneapolis, and they currently outnumber the local police force nearly five-to-one. One adviser said that while immigration enforcement will not end, the shooting is forcing the administration to rethink what operations will look like going forward.

Trump said he and Gov. Tim Walz spoke by phone Monday, calling it a “very good call” in a social media post.

Walz said Trump agreed to talk to the Department of Homeland Security about allowing state officials to conduct their own independent shooting investigations and decreasing the number of federal agents in his state.

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Read the full story here.

More news out of Minneapolis:

  • Democrats are pushing to drastically slash funding for ICE and Border Protection, or totally gut the agencies after the shooting death of Pretti.
  • Investigators are reviewing body-camera videos that captured Pretti’s fatal shooting. Analysis shows witness video contradicts the Trump administration’s description of the event.
  • A growing number of Senate Republicans are calling for an investigation into the shooting.
  • FBI Director Kash Patel says the agency is investigating Minnesota Signal chats that are tracking ICE.
  • A Minnesota Republican dropped out of the governor’s race, citing his party’s handling of immigration enforcement in the state.

Doctors break with CDC on vaccine guidance for children

A child is seen from behind while being vaccinated by a nurse on his left arm.
A child is vaccinated during an immunization event in the Panorama City neighborhood of Los Angeles on October 24, 2025.Patrick T. Fallon / AFP via Getty Images file

The nation’s leading group of pediatricians released its annual children’s vaccine recommendations — and for the first time in 30 years it significantly broke from the government’s proposed vaccine schedule.

The American Academy of Pediatrics’ guidance largely reflects what has previously been recommended, no longer completely aligning with the Centers for Disease Control and Prevention, which recently reduced the number of diseases on the vaccine schedule. The AAP additionally recommends shots against Covid, RSV, the flu, rotavirus, hepatitis A and B, and meningitis.

“These recent changes to the CDC schedule are a strong departure from the medical evidence and no longer offer the optimal way to prevent illness in children,” said Dr. Sean O’Leary, chair of the AAP’s committee on infectious diseases.

Read the full story here.

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The downfall of China’s top general

China Military
Chinese President Xi Jinping poses with Zhang Youxia in Beijing on Dec. 22, 2025.Li Gang / AP

The investigation into China’s top general, once a close ally of President Xi Jinping, has thrown the leadership of the country’s military into turmoil and raised questions about Taiwan’s future.

The Chinese Defense Ministry said in a statement that Gen. Zhang Youxia, vice chairman of the Central Military Commission, which controls the armed forces, was under investigation and accused of serious “violations of discipline and law.”

An editorial in the Liberation Army Daily newspaper, the mouthpiece of the country’s armed forces, suggested that Zhang, 75, was accused of corruption and possibly disloyalty to Xi.

Zhang was previously considered “untouchable,” according to Alessandro Arduino, an expert in Chinese security at the Royal United Services Institute, a London-based think tank. “This is a reminder coming directly from President Xi Jinping that political loyalty stands well before combat readiness,” he said. “Political disloyalty is a cardinal sin inside the party. I think the message is extremely clear: No one is safe.”

Of the six generals the president appointed to the commission in 2022, only one is left, allowing Xi to consolidate power but also heightening the risk of a military miscalculation when it comes to Taiwan, according to Steve Tsang, the director of the SOAS China Institute at the University of London. “Removing generals like Zhang means that there will not be any general who would dare to advise Xi against a military adventure when the time comes, and this increases the risk of a miscalculation,” he said.

Read All About It

  • TikTok says widespread disruptions were caused by a power outage, after users voiced concerns that they were being politically censored under the app’s new U.S. ownership.
  • India and the European Union have finalized a landmark trade deal that will represent a quarter of the world’s economy, Indian Prime Minister Narendra Modi said.
  • It’s officially tax season, and there are several new deductions going into effect this year that could change how Americans file their returns.
  • People are opting for the cheapest available Affordable Care Act plans, but that could lead to higher out-of-pocket costs later.
  • The remains of the last hostage held in Gaza were identified by the Israeli military, paving the way for the next phase of the ceasefire.
  • Alex Vindman, an Army veteran who was a key witness during Trump’s first impeachment, will run for the Florida Senate as a Democrat.
  • Ye, formerly known as Kanye West, apologized for his history of “reckless” antisemitic comments in a full-page ad in The Wall Street Journal.

Staff Pick: Some prediction market traders find a lucrative niche: Betting against Elon Musk.

Elon Musk
On websites such as Kalshi and Polymarket, users can place bets on what Elon Musk might do next.Leila Register / NBC News; Getty Images

As a tech reporter, I’ve seen Elon Musk fall short on a lot of promises. The Tesla CEO has failed, for example, to deploy fully self-driving cars. And since entering the political world, he has made one pledge after another that haven’t come true, such as his 2024 vow to find $2 trillion in federal budget waste.

Musk is also a master at evading scrutiny. Tesla’s sky-high share price is evidence of that, and he is still the world’s wealthiest person. But now, prediction markets are providing at least a small measure of accountability. These markets are rising in popularity, as people turn to sites such as Kalshi and Polymarket to wager on current events. Recently, I spoke with some users who bet against Musk’s predictions coming true — a strategy that has worked out pretty well for them.

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David Ingram, tech reporter

NBC Select: Online Shopping, Simplified

Staying hydrated should never fall to the bottom of your to-do list. One easy way to drink more water is to invest in a water pitcher with expert-approved filtration systems. You can also carry around a reusable water bottle to help hit your hydration goals—one of our editor favorites, the Yeti Rambler, is on sale right now for a limited time only.

Sign up to The Selection newsletter for hands-on product reviews, expert shopping tips and a look at the best deals and sales each week.

Thanks for reading today’s Morning Rundown. Today’s newsletter was curated for you by Kaylah Jackson, Marissa Martinez and David Hickey. If you’re a fan, please send a link to your family and friends. They can sign-up here.



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Video: Border Patrol Official Gregory Bovino Is Set to Leave Minnesota

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Video: Border Patrol Official Gregory Bovino Is Set to Leave Minnesota


new video loaded: Border Patrol Official Gregory Bovino Is Set to Leave Minnesota

The Trump administration is planning to move Gregory Bovino, a Border Patrol official whose tactics in major American cities have drawn controversy, out of Minneapolis, according to two officials.

By Jackeline Luna

January 26, 2026

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