For the first time in U.S. history, the national debt has risen past $17 trillion. That number is a bit hard to comprehend and means little to Americans when not applied to their everyday lives. So just how does the national debt affect consumers, and why should the average American care about how much this country owes? Here’s why and how.
So says an introduction by Aubree Ritter to an infographic* from www.accounting-degree.org entitled Paying Their Dues: How the U.S. National Debt Affects YOU.
[The following is presented by Lorimer Wilson, editor of www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Understanding the National Debt
The national debt is money the federal government owes to various sources. 2/3 of the national debt owed to the public, businesses and foreign governments that bought investments in the U.S. The rest of the national debt is actually what the U.S. federal government owes itself, as loans for things like Social Security and other trusts.
How the National Debt is Affecting Americans Today
- Rising interest rates
The higher the consumer debt and interest rates on credit cards and loans, the more foreign investments the country receives. This is bad for you, but good for the federal government.
- Weak job markets
High national debt means little economic growth. Unfortunately, this also means fewer jobs are created through government spending on projects like road construction and small business loans.
- Higher taxes
When the government can’t make revenue through typical means to pay off the debt, it will turn to raising taxes for consumers and property owners.
The Countries With the Highest Debt-to-GDP Ratios (see details below)
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
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