Many people believe that the nation debt has no affect on them, but it acutally does. As the debt gets higher our interest rates that we pay for loans on morgages is affected. It also affects the tax rate we pay and all of the national services we take for granted. A higher debt could potentially mean less social services and other necessities. It could also affect our Nations economic status leading in more spending cuts.
2.Who do we owe money too?
We owe this money to many people. We owe it to foreign investors, foreign governments, foreign investors. We also owe money to a variety of countries as you can see on the chart below.
3. What is the difference between Debt and Defict?
The national debt is the net accumulated borrowing by the federal government. It's the difference between all the money that our federal government has ever spent and all the revenue that it has ever collected since our nation's inception. The annual federal budget defict is the amount our federal government borrows each year.
It's the difference between what the federal government spends and the revenue it receives during a particular year. So each year's deficit is added to the existing debt. When revenue exceeds spending, it's called a surplus, which subtracts from the debt.
It's the difference between what the federal government spends and the revenue it receives during a particular year. So each year's deficit is added to the existing debt. When revenue exceeds spending, it's called a surplus, which subtracts from the debt.
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