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National Debt in Usa

In: Business and Management

Submitted By Neyman
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National Debt in the U.S.A
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ABSTRACT
The fast increase in the National government debt is becoming of interest to decision makers and the citizens of the USA. This paper examines the implications of the increasing debt financing to the economy of the United States. The proportion of the U.S.A National debt is rising in comparison to the National GDP. In the past decade, the USA Treasury has been borrowing trillions of dollars from both foreign investors and its citizens to help fund wars save the financial system as well as promote the economic development of the country. Does the increasing debt have any impact on economy? This paper will explain that an appropriate analysis on the United States debt is important to cope up with this worrying trend.
INTRODUCTION
In general, debt can be viewed as something specific in nature which the creditor and debtor can’t control at will. The United States National debt has been increasing at an average rate of about $1.64 billion each day since September, 2004 (Lucas, 2005). Manuel estimates that every human being in the United States currently owes $56,651 for their share of the U.S.A public debt. As at 27th October 2013, the total National debt of the United States was $ 17,211,829,040,346.01 (Manuel, 2013). This is an indication of how the national debt in the United States of America has been rising in the recent years. Recently this month, data from official government sources has shown that the U.S debt jumped with $300. It has been projected that this figure is to increase in coming years.
Debt can be viewed from two different perspectives. If a country uses it intelligently and reasonably, it will help improve well-being. If used to large extent, the outcome is usually disastrous. Intensive use of debt financing...

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