National Debt And Debt Of The Federal Government

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National debt, the accumulated debt of the federal government, has always been a major political issue for the government. The United States has always been in debt, in fact, we started out in debt. In 1977, The Continental Congress needed to borrow money to continue the Revolutionary War. As the years went by, and more presidents took office, the national debt increased. As of September 1, 2016, the United States national debt was listed to be $19.5 trillion. With all the national debt, the government must find a way to use it. This is where deficit spending, the use of borrowed funds to finance government expenditures that exceed tax revenues, comes in. Although national debt has a lot of disadvantages, there are also many advantages. National debt gives countries the opportunity to receive extra funds to invest in economic growth, and it’s a safe way for foreigners to invest in a countries growth by buying government bonds. National debt allows the government to fight against contingencies, and also allows the government to build new roads and bridges, improve education, job training, and provide pensions. This spurs citizens to spend more instead of saving for retirement, further boosting economic growth. National debt can also help cope with depression. Disadvantages of national debt include the fact that governments tend to take on too much debt, and it will interfere with economic conditions. Fighting against contingencies, such as tornadoes, hurricanes, earthquakes
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