Us National Debt Essay Example
The U.S. National Debt
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 (Sylla). 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 (ZFacts). 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 ultimately affect future generations of the United States and the different ways the government can best deal with it, it is first necessary to discuss its’ history. The origin of the national debt dates back to the War of Independence. In 1775, the Continental Congress authorized an issue of $2 million of bills of credit called Continentals to finance the war. At the end of 1779, $241.6 million of Continentals had been authorized in addition to several U.S. loan certificates, foreign loans, and state-issued bills of credit. This caused the worst inflation in U.S. history. By 1780 the Continentals became nearly valueless and the loan certificates, foreign loans, and state- issued bills of credit also depreciated greatly in value. Following the end of the war in 1782, Congress authorized commissioners to travel around the country to examine claims against Congress and the Continental army and revalue them in terms of hard money. The revalued debt amounted to approximately $27 million. At that time, the Articles of Confederation did not grant Congress an independent power
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 (Sylla). 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 (ZFacts). 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 ultimately affect future generations of the United States and the different ways the government can best deal with it, it is first necessary to discuss its’ history. The origin of the national debt dates back to the War of Independence. In 1775, the Continental Congress authorized an issue of $2 million of bills of credit called Continentals to finance the war. At the end of 1779, $241.6 million of Continentals had been authorized in addition to several U.S. loan certificates, foreign loans, and state-issued bills of credit. This caused the worst inflation in U.S. history. By 1780 the Continentals became nearly valueless and the loan certificates, foreign loans, and state- issued bills of credit also depreciated greatly in value. Following the end of the war in 1782, Congress authorized commissioners to travel around the country to examine claims against Congress and the Continental army and revalue them in terms of hard money. The revalued debt amounted to approximately $27 million. At that time, the Articles of Confederation did not grant Congress an independent power