The Deficit:

•What’s a Deficit? A budget deficit occurs when the government spends more money than it earns in revenue. For FY 2024, the deficit was about $1.8 trillion. Imagine if you only made $4.9 trillion (the revenue) but spent $6.5 trillion; you’d be $1.6 trillion in the hole, which is essentially what happened with the federal government.
•Why Does the Deficit Matter? A large deficit means the government needs to borrow money to cover its costs, which increases the national debt.

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Interest on the Debt:

•Interest Payments: In FY 2024, the U.S. spent approximately $950 billion just on interest for the national debt. This is like paying $30,000 every second in interest alone. It’s the second or third largest line item in the budget, only behind or close to Social Security and defense spending.
•How It Works: Just like how you might pay interest on a loan or credit card, the U.S. government pays interest on the money it has borrowed. With a debt level of roughly $35 trillion at the end of 2024, even small interest rates can lead to enormous payments.

The Debt Spiral:

•Borrowing to Pay Interest: Here’s where it gets trickier. When the government can’t cover its costs, including interest on the existing debt, with current revenue, it borrows more money. This borrowing increases the national debt. Now, with more debt, there’s more interest to pay the next year, which might require even more borrowing if revenues don’t increase or spending doesn’t decrease, leading to what’s called a “debt spiral.”

US debt clock

Meanwhile

Ann Althouse:

There was a budget surplus when Bill Clinton left office, and we now have a deficit counted in trillions, and the national debt is in the tens of trillions. Those who don’t like the service Elon Musk is giving to his country — what is their alternative?