In Debt We Trust

Topics: Federal government of the United States, United States public debt, Government debt Pages: 2 (662 words) Published: June 23, 2009
In Debt We Trust

It is common knowledge that public debt is one of the basic topics in macroeconomics. Debt is actually a certain amount of goods or money (mostly money) owed by one side to another. There are various types of debts, from personal debts to debts by the government. The US public debt is the amount of money owed by the United States federal government to creditors.

National and individual debt combined total well over $10 trillion. The video notes how credit card companies quarry on college students and others too young and dumb to realize how easily a spending spree can change their future. Meanwhile, the working poor are mislead into loan schemes with huge disciplinary consequences for late payment, including ever-more-frequent home foreclosures. Middle-class families end up in deepening debt just trying to maintain the same home-and-car-owning lifestyle their parents could afford. Where there used to be a penalizing but real last-ditch escape route, Republican lawmakers recently shoved through restrictions making it almost impossible for individuals to declare bankruptcy.

The national debt is the total amount of money the United States Treasury Department has borrowed and currently owes to the federal government's creditors. These creditors are mostly comprised of the public, including individuals, corporations, as well as state, local and foreign governments. They also consist of various government trust funds, such as Social Security and Medicare. Additionally, they include the Federal Reserve, mostly in the form of treasury bonds, bills and notes. Currently, the U.S. national debt is estimated to be $8.5 trillion. This ever-growing figure brings with it several social and economic implications. Therefore, the national debt is a frequently debated topic that has over the years produced various schools of thought on how the U.S. government should manage it. In order to understand how the national debt could...
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