National Debt of the Usa

Only available on StudyMode
  • Download(s) : 31
  • Published : January 27, 2013
Open Document
Text Preview
National debt of the United States of America.
National debt or public debt is the debt owed by a central government. The debt is sold in the form of securities to domestic or foreign investors, such as corporations and other countries governments. U.S. securities issued include Treasury bills, notes and U.S. savings bonds. The amount of money that the federal government of the USA owes to its creditors now tops $15.23 trillion. It means that every man, woman or child debt over than $45,000. The USA public debt in 2011 is rather around 100 percent of GDP. In answering the question what is the cause for the national debt, the simple answer is that the country’s government gives out more money than it takes in. The highest level of the public debt was observed after the Great American Depression and after the Second World War. Debt was the 120% of the America’s annual income. Then debt was declining when the US and majority of countries experienced a post-war economic expansion. During the next 37 years the national debt was decreasing all time and in 1981 compare to the national income it was the lowest in 50 years. Then it started growth. What happened? The President Reagan became conduct a supply-side policy (It is a policy of reducing taxes in order to encourage economic growth). Next American presidents (except B. Clinton) were continuing the supplying policy and also increased military spending for Afghanistan, Iran and Iraq. George Bush set the record – 1$ trillion in 100 days. Then he left. So, the debt was $10.6 trillion on the day Mr. Obama became a president. The latest calculation shows the debt has now hit $15.23 trillion. It's the most rapid surge in the debt under any U.S. president. President Barak Obama doesn’t supply the supply-side policy, but the debt still growing up. Mr. Obama blames policies inherited from the previous administration of The White House. At the same time Obama chose the way of reducing unemployment It means to make taxes...
tracking img