$38 Trillion DEBT: Can America Survive?

A new report reveals a staggering increase in government spending per person, sparking concern over America’s financial future.

Story Summary

Government spending per person has surged nearly 10,000% since 1916.
The increase is linked to historical events like wars, New Deal, and COVID-19.
Current spending levels are historically extreme and unsustainable.
National debt has reached a troubling $38 trillion.

Historic Surge in Federal Spending

According to the latest analysis by OpenTheBooks, federal spending per person has skyrocketed nearly 10,000% since 1916. This colossal increase underscores the expansive growth of the U.S. government over the past century. From World War I to the New Deal and recent COVID-19 relief efforts, each major event has contributed to this fiscal swell, leading to the unprecedented spending levels we see today.

In 1916, federal spending was approximately $208 to $217 per person, adjusted for inflation. Fast forward to 2025, and the Congressional Budget Office (CBO) estimates total federal outlays at $7.035 trillion, equating to $20,474 per person. This marks a significant departure from past norms, establishing a new, higher baseline for federal expenditures.

Federal spending per person has surged nearly 10,000% since 1916—reaching $20,474 per American in 2025. That's what we at Open the Books call government doing less with more. pic.twitter.com/qgBfa03Cbs

— Open the Books (@open_the_books) December 10, 2025

Implications of Current Fiscal Policies

The fiscal implications of such spending are profound. With the national debt now hovering around $38 trillion—an increase of approximately $70,000 every second—conservative analysts warn of the long-term economic consequences. The continuous borrowing and rising national debt threaten to burden future generations, potentially crowding out private investment and driving up interest rates.

The sustained high levels of spending are largely driven by entitlement programs like Social Security, Medicare, and Medicaid, which have seen increased outlays due to demographic shifts and healthcare costs. Additionally, the legacy of pandemic-era spending continues to impact current fiscal policies, with elevated levels of government expenditure becoming the new normal.

Political Responses and Future Outlook

In response to this fiscal trajectory, political debates have intensified. The extension of pandemic-era subsidies, such as those under the Affordable Care Act, has sparked controversy, with critics arguing that these temporary measures have become semi-permanent fixtures in federal spending. Meanwhile, efforts to cut spending in certain areas have been offset by increased allocations to defense and veterans’ affairs, limiting overall fiscal improvements.

With President Trump now in office, the focus has shifted towards addressing these fiscal challenges by implementing tariffs and reducing spending in certain agencies. However, these measures are yet to significantly alter the fiscal landscape. As America grapples with its fiscal future, the need for sustainable and responsible governance becomes increasingly critical.