By James D. Agresti
March 12, 2025
Overview
Elon Musk recently stated that “rich people” should “be caring more” about federal deficits because “if the ship of America sinks,” “we all sink with it.” This may seem like hyperbole, but a widely overlooked report from the U.S. Treasury shows it is a likely scenario unless major changes are made.
The Treasury report, quietly released in January, shows that if the federal government reported its finances in the same manner that large corporations are required by law to report theirs, the primary measure of federal red ink wouldn’t be $36 trillion in national debt but $143 trillion in debts, liabilities, and unfunded obligations.
This staggering figure equals 85% of all the wealth Americans have accumulated since the nation’s founding. It also equates to an average burden of $1.1 million on every household in the nation.
Unlike other measures of federal finances that cover an arbitrary period, extend into the infinite future, or ignore government assets, the figure of $143 trillion applies strictly to Americans who are alive right now and accounts for the value of the government’s commercial assets. Thus, it quantifies the full federal financial burden on today’s Americans.
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