1. Which other countries are experiencing national debt the way the US is?
One other country that is experiencing difficult economic times is Greece. Due to uncontrolled government spending, Greece has suffered its most severe debt crisis since becoming a democracy. The government was able to spend beyond its means, leadings to anger among Greek citizens.
2. What's the difference between debt and deficit?
The national debt is the net accumulated borrowing by the federal government. Essentially, it is the difference between all of the money we as a nation have ever spent and the total revenue we have made.
The annual federal budget deficit is the amount that our federal government borrows each year. So, it is the difference between what the government spends and what it makes in revenue in one year. Each year the deficit is added to the existing debt.
3. What are some ways to reduce national debt?
- Curb government expenditures.
- Increase taxes.
- Increase the labor force.
- Cut the current deficit.
- Decrease logrolling.
- Raise taxes on the wealthy and on big businesses.