National Debt - USA & World 13.9

National Debt refers to the total amount of money that a government has borrowed and not yet repaid.

National Debt is typically measured as a percentage of a country's Gross Domestic Product (GDP) or in absolute terms in the country's currency.

National Debt affects a country's economy, as high levels of debt can lead to higher interest payments, lower credit ratings, and potential economic instability.

The USA owes money to various entities including foreign governments, investors, and domestic agencies like the Social Security Trust Fund.

National Debt can impact taxpayers through increased taxes, reduced government services, and decreased ability to respond to economic crises.

Countries may reduce their National Debt through measures like increasing taxes, reducing government spending, and implementing economic reforms to stimulate growth.

National Debt is the total amount owed by the government over time, while Budget Deficit refers to the annual shortfall between government revenues and expenditures.

It is theoretically possible for a country to eliminate its National Debt, but it would require strong economic growth and disciplined fiscal policies over an extended period.

High levels of National Debt can burden future generations with higher taxes, reduced government benefits, and limited resources for investments in areas like education and infrastructure.

Defaulting on National Debt can lead to severe economic repercussions like higher borrowing costs, loss of investor confidence, and potential recession.