National Debt by Year Compared to GDP and Major Events

The national debt is more than $21 trillion. It exceeded that amount on March 15, 2018. It's greater than the economic output of the entire country. It occurred despite Congressional attempts to cut government spending. These included threats to not raise the debt ceiling and the U.S. debt crisis in 2011. That's when the U.S. headed toward a debt default. It continued with the fiscal cliff crisis in 2012 and a government shutdown in 2013.

 Sequestration slowed, but didn't halt, deficit spending beginning in 2013. 

You can't look at a country's national debt in isolation. Sometimes expansionary fiscal policy, such as spending and tax cuts, was needed to spur the economy out of recession. Other times, the United States increased military spending to respond to national threats. For more, see Why Is the U.S. Debt So Big?

For those reasons, the national debt by year should be compared to the size of the economy as measured by the gross domestic product. This gives you the debt to GDP ratio. You can use it to compare the national debt to other countries. It also gives you an idea of how likely the country is to pay its debt back.

By spurring economic growth, the government spending or tax cuts that created the national debt can reduce it in later years. That's because a growing economy will produce more tax revenues to pay back the debt.

For more, see Supply-side Economics.

There are other events that can increase the national debt. For example, the U.S. debt grew after the 9/11 attacks as the country increased military spending to launch the War on Terror. Between FY 2001-FY 2017, it cost $1.9 trillion. This included increases to the Department of Defense and the Veterans Administration.

In the table below, the U.S. debt by year is compared to GDP and national events since 1929. Please note that the debt and GDP are given as of the end of the third quarter (September 30) in each year to coincide with the fiscal year. That's the best way to accurately determine how spending in each fiscal year contributes to the debt and to compare it to economic growth. Please note: GDP in the years up to 1947 are not available for the third quarter, so year-end figures are used.  They are compared to July figures for the debt/GDP ratio.

National Debt by Year Since 1929:  Compared to Nominal GDP and Major Events

* 1976 was the final year the fiscal year was July 1. Those years were compared to Q2 GDP for consistency.

Resources for Table

• U.S. Treasury, Debt to the Penny
• Office of Management and Budget, Historical Tables, Table 7.1—Federal Debt at the End of Year: 1940–2021
• U.S. Bureau of Economic Analysis, GDP and Personal Income
• Historical Fed Funds Rate
• History of Dow Closing Average
• Cost of Wars

More History

• U.S. Deficit by Year
• Oil Price History
• Debt by President
• Deficit by President
• ​National Debt Under Obama.
• U.S. GDP by Year
• GDP Growth Rates by Year
• Unemployment Rate by Year
• Inflation by Year
• Gold Prices by Year