Minnesota
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.
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.”
MORE NEWS: https://www.cbsnews.com/minnesota/news/new-law-aims-to-crack-down-on-littering-on-lake-ice/
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.
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
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.
Eagan, MN – Minnesota Aurora FC clinched a fifth straight Heartland Division title and a spot in the USL W League playoffs with a 4-1 win over River Light FC on Saturday at TCO Stadium.
Aurora improved to 10-0-0 on the season and finished its home schedule unbeaten.
Ai Kitagawa scored twice and added an assist, increasing her season total to 11 goals. Flavie Dubé had a goal and an assist, and Amelia Brown scored her first goal of the season.
***Click video box at the top of the page for postgame interviews***
Kitagawa opened the scoring in the 14th minute off a through ball from Dubé. River Light tied it in the 27th on a header from Victoria Adams — the first goal allowed by Aurora this season.
Minnesota regained the lead in first-half stoppage time on Dubé’s breakaway finish and extended it in the 51st minute when Kitagawa scored again on a cross from Gracie Dunaway. Brown added a late goal in the 81st minute.
Aurora will play its final two regular-season games on the road before the playoffs begin the weekend of July 3-5.
Minnesota
Minnesota man arrested in WI for ‘numerous’ criminal sexual conduct charges against a child
A Minnesota man was arrested in Wisconsin on allegations of multiple criminal sexual conduct charges against a child.
Nathan Brase, 33, of Minnesota, was arrested in Medford, Wisconsin, on Thursday after an arrest warrant was issued. According to the Taylor County Sheriff’s Office, the warrant was issued following an Internet Crimes Against Children Task Force investigation by the Two Rivers Police Department
That investigation reportedly led to Brase facing what authorities say are “numerous” felony charges, including exposing his genitals to a child and grooming a child for sexual activity.
Brase is currently being housed in the Taylor County Jail, awaiting extradition.
Minnesota’s defense was huge in the fourth quarter Friday. And on a rare offensively challenging night, Olivia Miles came up big late in other ways.
The Lynx limited Golden State to just 13 points in the final frame and beat the Valkyries 81-75 in San Francisco.
Minnesota has won 11 of its past 12 games.
Golden State finished 4 of 22 from the field in the final 10 minutes, including an abysmal 2 of 13 from deep. Golden State went 12 for 40 from distance overall, a significant departure from its 36.9% mark entering the game, which was good for second-best in the association.
The Valkyries led by 12 late in the first half, but were outscored 16-3 by the Lynx around halftime and 40-29 in the final 20 minutes.
“You don’t get better when it comes easy. This was definitely a challenge for us. It just helps us to understand how to play as a team, how to handle those different moments, how to stay together,” said Nia Coffey, who led the Lynx with a season-high 22 points. “Things aren’t always going to go our way, so I think we made some good strides.”
Courtney Williams added 21 points, a season-high 12 rebounds and five assists. Playing with much enjoyment, she also blew some kisses to the crowd and made heart gestures with her hands.
“The got an amazing fan base, and they fan base not that nice,” she said smiling. “But I love it, because who don’t want to play in this type of environment?”
Kayla McBride added 17 points.
“We needed Courtney Williams and Mac to compete, compete, compete,” coach Cheryl Reeve said. “Courtney’s first five minutes were forgettable and then she played the remainder of the game exactly as we needed her to do. She provided the compete for us. The rookie needed her.”
That first-year player would be Miles, who scored just seven points on 1 of 10 shooting, the first time in her young career not reaching double digits. But Miles recorded a three-point play early in the fourth quarter and drained a pair of free throws with 15.4 seconds left for a 79-75 lead.
The star point guard then blocked a 3-point try by Cecilia Zandalasini at the other end before Ola Kosu iced the game with two free throws.
“Us and them are the two best defensive teams in the league, so what she saw was actual defense,” Reeve said. “She saw physicality, she saw aggressive trapping. … Liv needed a game like this. This was a tremendous growth point for her when things don’t go your way, how do you show up? What she showed is that she’ll show up on the defensive end with kind of a game-sealing block, rebounding the basketball, closing out with free throws. She didn’t quit. … Maybe her numbers weren’t gaudy, but the impact she had on the game still was tremendous.”
The Lynx (13-3), who open a home-and-home series with Washington Sunday at Target Center, made 21 of 23 free throws, including eight of nine in the fourth quarter. The Valkyries (10-6) made just three of eight in the fourth quarter and 11 of 17 overall.
Down by 12 with under a minute to play before the half, McBride scored on a cutting layup, and after a Golden State miss, made two free throws. She then forced a Golden State turnover that led to Coffey getting fouled on a 3-pointer with 0.2 seconds left. With all three free throws falling, the Lynx were only down 46-41 after two quarters.
-
Colorado5 minutes agoColorado’s Powderhorn Mountain Resort sells historic lift chairs
-
Connecticut8 minutes agoDeveloping story: Crash closes Taft Bridge on Connecticut Avenue NW
-
Delaware20 minutes agoDelaware Lottery Powerball, Play 3 Day winning numbers for June 20, 2026
-
Florida23 minutes agoJuneteenth in Fort Myers: See photos of the celebration
-
Georgia28 minutes ago
Georgia Lottery Powerball, Cash 3 results for June 20, 2026
-
Hawaii35 minutes agoWaianae encampment deadline extended amid pushback from lawmaker, community
-
Idaho38 minutes agoOne dead, four injured in US 26 crash near Ririe – East Idaho News
-
Illinois43 minutes agoIllinois Prison Closure Deepens Small Town’s Fears
