Business, 11.04.2021 05:30 gmoney58

PLEASE HELP! 100 points for just the question Is national debt a problem? Explain your opinions

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The national debt is the public and intragovernmental debt owed by the federal government. It’s also called sovereign debt, country debt, or government debt.

It consists of two types of debt. The first is debt held by the public. The government owes this to buyers of its bonds. Those buyers are the country’s citizens, international investors, and foreign governments.

The second type is intragovernmental debt. The federal government owes this to other government departments. It often funds government and citizens’ pensions. An example is the U.S. Social Security retirement account.

The federal government adds to the debt whenever it spends more than it receives in tax revenue. Each year's budget deficit gets added to the debt. Each budget surplus gets subtracted.

Politicians and their voters become addicted to deficit spending. It's called expansionary fiscal policy. The government expands the money supply in the economy. It uses budgetary tools to either increase spending or cut taxes. That provides consumers and businesses with more money to spend. It boosts economic growth over the short-term.

Here's how it works. The federal government pays for things like defense equipment, health care, and construction. It contracts with private firms who then hire new employees. They spend their government-subsidized wages on gasoline, groceries, and new clothes. That boosts the economy. The same effect occurs with the employees the federal government hires directly.

Answer from: kaseyvn03

Yes the National debt is a problem because the when the money is paid it will bankrupt future generations. we will transfer wealth outside the country since the debt is owed to foreigners. various entities are expressing concern about the ability of U.S government to continue to borrow. we cannot print more money bc inflation will go out of control. some day there is an upper limit to how much a govt can borrow and we must be getting close to limit.

No, The national debt is not a problem because when the debt is repaid is simply a transfer of wealth from one segment of society to the other. U.S. can pay off debt by incurring new debt. U.S. can repay its debt at anytime by printing more money. U.S. debt is owed in dollars.

Answer from: Quest

and whats your questoin

Answer from: Quest

engine assembler, survey reasearcher, auditor

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PLEASE HELP! 100 points for just the question Is national debt a problem? Explain your opinions...

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