You can't go a minute without hearing it. America is in debt up the kazoo. We've mortgaged the future. Sold the potential. Become beholden to others. You know all the taglines. A look at public debt growth over the past 15 years tells the story:

Year

Total Outstanding Public Debt (in Trillions)

1994

$4.5

1995

$4.8

1996

$5

1997

$5.3

1998

$5.5

1999

$5.6

2000

$5.8

2001

$5.7

2002

$5.9

2003

$6.4

2004

$7

2005

$7.6

2006

$8.2

2007

$8.7

2008

$9.2

Today

$11.9

Source: Treasury Direct.

The annual increase in today's debt is nearly equally to 1994's total debt accumulated over the previous 200-plus years. GDP growth makes some of that increase reasonable, but not nearly enough. Any way you spin it, we're more in hock today than just about any time post-World War 2. Here's a good illustrationof that.

This alone, though, ignores an important point. What's crucial isn't the amountof outstanding debt, but the costof that debt. Borrowers can handle astronomical debt loads if the cost stays low enough for long enough. That's why fast-food workers could live in McMansions in years past. Keep costs low, and big debt loads look controllable.

That in mind, have a look at the national debt's annual cost over the past 15 years:  

Year (Fiscal)*

Total Public Debt Interest Expense (in Billions) 

1994

$296

1995

$332

1996

$344

1997

$356

1998

$364

1999

$354

2000

$362 Continued...