The Effects of National Debt on the Economy

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Table of Contents

Abstract………………………………………………………………………………………………………………………………………..3
Introduction………………………………………………………………………………………………………………………………….4
Literature Review………………………………………………………………………………………………………………………….9
Discussion…………………………………………………………………………………………………………………………………….10
References……………………………………………………………………………………………………………………………………11

Abstract This article discusses the shape the economy is in. Then the article examines what national debt is, and the national debt in America. Next, the article examines the recession in detail. The the article explains some the negative effects of the recession. Finally, the author of this article discusses some of the things the government has done, and the things they are doing to fix the national debt problem.

I.Introduction
It is safe to say that the current US economy is in turmoil. From failing companies to housing foreclosures, we can see that something needed to be done to turn our economic position around. In 2008, President Barack Obama passed a stimulus package in hopes that it would return the US economy back to a normal standing. The tax stimulus that was extended to the US economy has impacted the US by providing more education and healthcare, unemployment benefits, bankrupting companies, putting more money into the economy, but in returned increased the national debt and affected society as a whole.
The United Sates National debt dates back to 1789. It was on September 18 of this year that Alexander Hamilton, secretary of the treasury, asked the Bank of New York for a loan. The loan amount was for $19,608.81, which was the start of the National Debt under the new constitution. This was unusual in that time because government was considered to be a bad credit risk. Mr. Hamilton read deep into politics and discovered that having a national debt was actually profitable. It allowed money to be borrowed in government issued bonds. Today the bond



References: Boroughs, Don L. "What 's wrong with the American economy." U.S. News & World Report (1992). Clocks, National Government Debt Clocks & Savings. 17 October 2011 <http://zfacts.com/p/461.html>. Cloud, S.W. "Who deserves the blame? ." TIME (1990). Riedl, Brian. "Should a Balanced Budget Be a Top Priority?" U.S. News Digital Weekly (11/5/2010). Riley, Charles. "Obama stimulus plan: Will it work?" CNN Money (2011).

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