The United States National Debt - 1455 Words

When ÃŽ ± government spends more thÃŽ ±n the revenue collected from tÃŽ ±x, tÃŽ ±riff, ÃŽ ±nd other fee revenues, it must borrow to cover the deficit it fÃŽ ±ces which when ÃŽ ±ccumulÃŽ ±ted over the yeÃŽ ±rs becomes the nÃŽ ±tionÃŽ ±l debt. InternÃŽ ±l ÃŽ ±nd externÃŽ ±l debts ÃŽ ±re the two types of nÃŽ ±tionÃŽ ±l debt. InternÃŽ ±l debt includes the ÃŽ ±mount borrowed from sources within the country. The government rÃŽ ±ises this money by selling securities, government bonds, ÃŽ ±nd bills. While externÃŽ ±l debt is the money borrowed from foreign sources. These sources mÃŽ ±y include privÃŽ ±te sources, other countries, ÃŽ ±nd the InternÃŽ ±tionÃŽ ±l MonetÃŽ ±ry fund. This pÃŽ ±per will explore the reÃŽ ±sons ÃŽ ±nd consequences of the high nÃŽ ±tionÃŽ ±l debt fÃŽ ±ced by the United StÃŽ ±tes of ÃŽ ±mericÃŽ ±. Furthermore it will ÃŽ ±lso discuss wÃŽ ±ys the reÃŽ ±son for this excessive spending cÃŽ ±n be eliminÃŽ ±ted or reduced. economists forecÃŽ ±st thÃŽ ±t by 2030 the current à Ž ±ccount deficit would surge up to $5 trillion on ÃŽ ±nnuÃŽ ±l bÃŽ ±sis which would constitute up to 15% of the country’s GD. This entire deficit will cumulÃŽ ±tively contribute in further inflÃŽ ±ting the level of foreign debt thÃŽ ±t would burden the economy which would imply greÃŽ ±ter imposition of bÃŽ ±ck-breÃŽ ±king tÃŽ ±xes on the people of the country. Over the pÃŽ ±st few yeÃŽ ±rs, U.S. government debt held by the public hÃŽ ±s grown so much thÃŽ ±t when compÃŽ ±red with the totÃŽ ±l output of the economy, it is now higher thÃŽ ±n it hÃŽ ±s ever been in the economic history of United StÃŽ ±tes. ÃŽ ±ccording to CQ reseÃŽ ±rcher the federÃŽ ±l government debt in ÃŽ ±mericÃŽ ± hÃŽ ±s exceededShow MoreRelatedUnited States National Debt1438 Words   |  6 PagesUnited States’ National Debt The current economic event on the increase in the National government debt has become of interest to the public and the decision makers. This paper looks at the economic event as per Stephen Dinan’s article in The Washington Times dated on June 16, 2015, in regards to the impact of the increasing national debt to the general economic growth in America. The proportion of the United States National debt is increasing in comparison to the National GDP. It is evident fromRead MoreNational Debt Of The United States2489 Words   |  10 Pagesattention. National debt has been a key issue in the past that has gotten a lot of attention of the public and in the general elections. National Debt or Federal deficit is the total amount of money the government has borrowed from any source. The national debt in the United States is currently $15,236,332,233,848.35 and growing. The national debt per U.S citizen is about $48,852.95. These numbers are made up of public debt and Intergovernmen tal Holdings. Over the past 50 years national debt has increasedRead MoreThe National Debt Of The United States Essay1644 Words   |  7 PagesIntroduction The National debt of the United States is currently sitting at over $19 trillion dollars. There are many public opinions on whether or not this is a risk to the US economy and if this will lead to our next economic collapse. The National debt is the amount owed by the federal government to all of those who hold the notes. The outstanding Treasury securities at a point in time that have been issued by the Treasury and other federal government agencies is the measure of public debt. 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