You’ve likely heard the grim pronouncements: “We’re bankrupt, we just print money out of thin air!” or “Our national debt is so big we’ll never pay it off!” These claims, often amplified on social media and in certain news outlets, paint a picture of the United States teetering on the brink of financial ruin. But is this accurate? What is the real story behind How Much Is The U.s. Worth? Let’s delve into a thought experiment to explore the balance sheet of the United States and uncover the truth.
Liabilities: Unpacking the Debts
Let’s start with the less appealing side of the balance sheet: the liabilities. According to the National Debt Clock, the U.S. owes over $28 trillion. That’s a staggering figure. Beyond the national debt, there are also unfunded liabilities such as Medicare and Social Security. While there isn’t a definitive number, a conservative estimate places this figure around $200 trillion, encompassing federal and veteran benefits. To account for miscellaneous obligations, let’s add a “catch-all” category of $5 trillion, representing guarantees and debts owed to various entities.
This brings the total liabilities of the United States to an estimated $233 trillion.
Assets: Quantifying America’s Wealth
Now for the more promising side of the equation: the assets of the United States. Every balance sheet features both liabilities and assets, so what does America possess? The U.S. government holds a mix of physical and financial assets.
Beginning with physical assets, the Bureau of Economic Analysis (BEA) estimates the value of U.S.-owned land at roughly $1.8 trillion. The natural resources, both on and offshore (including water, timber, silver, copper, and oil), are valued at approximately $125 trillion. The U.S. also holds about $450 billion in gold reserves and $1.4 billion in properties and inventories.
For another “other” category, consider the potential sale of military equipment, such as aircraft carriers and planes. Let’s assign this a value of $10 trillion.
Turning to financial assets, the U.S. holds nearly $1.5 trillion in federally backed student loans and around $2.2 trillion in cash and other investments, according to data from the U.S. Treasury.
The total value of tangible and easily quantifiable assets reaches approximately $142.3 trillion.
However, the true financial strength of the U.S. lies in less concrete, yet immensely valuable assets: human capital and taxation power.
The Intangible Assets: Human Capital and Taxation Power
Consider the value of the entire U.S. education system and the human capital it cultivates. The students of today could become the innovators and entrepreneurs of tomorrow, developing groundbreaking technologies and creating world-changing companies. Think of the potential for future inventions and discoveries, such as the mRNA vaccines. Quantifying this is challenging, but for the sake of this analysis, let’s estimate it at $100 trillion.
Furthermore, the U.S. government possesses the power to tax the most productive private sector in the world. This includes taxing both individuals and companies operating within its borders. Determining the exact worth of this ability is extremely difficult, but let’s conservatively estimate it at $300 trillion.
The Bottom Line: America’s Net Worth
Adding up all the assets, the United States boasts a total asset value of over $542 trillion.
Subtracting the total liabilities of $233 trillion, the final U.S. net worth comes to approximately +$309 trillion.
Conclusion: Prosperity and Perspective
The United States undoubtedly carries a significant amount of debt. However, focusing solely on the debt can be misleading. The U.S. possesses vast assets, a highly productive economy, and a strong capacity for innovation. The nation is likely one of the wealthiest in history, and its economic strength continues to drive global markets.
The next time you hear someone declare the U.S. is bankrupt, remember to consider the complete picture: the liabilities and the assets. The economic might, the rule of law, the groundbreaking innovations, and the dedicated workforce of the United States contribute to long-term prosperity that will extend far into the future.
