What does it mean that the U.S. is $31 Trillion in debt?

Question

To whom? When did we start keeping track? What does it practically mean as I image it will never be paid back?

In: Economics

Answer 1

That if everyone who owned debt from the US government (mostly retirement plans from people in the workforce) demanded payment now, the US government would have to come up with $31 trillion.

Of course that would result in massive tax payments since most people are too young to retire. But it would also probably require them to print money, which drive up inflation.

In the more realistic scenario on which people retire in their late 60’s and start pulling their money out of T bonds at the exact same time the government needs to foot a larger bill for social security, unless the government agrees to cut benefits they will have to borrow the difference, which will either result in rising taxes or more inflation.