Today is May 24th my fellow home staying friends. Today’s topic is on National Debt. However, it will be on the U.S. National Debt. Before we start, my link sources are right here. -> Debtclock and Investopedia– National Debt, and Investopedia– Budget Deficit.
Life of 12 year old- Coronavirus lockdown- Part 44
What is National Debt? National Debt is how much money the U.S.( for the U.S. National Debt) or a country owes its creditors or people to whom money is owed to. It is also rising, as you can see from the Debt Clock. ( You may have to click on the reverse button to go to the year 2020, it was linked to the year 2024) When the government pays back, it usually is with tax revenues, not GDP. The Treasury products finance the deficit by borrowing form investors. The investors can be both foreign and domestic. Before you complain about how the Government is just taking your hard-earned money, listen, or understand this. The Government needs the money to help you, us, everyone. $1.3 trillion totaled is spent on Medicare and health care problems. $1.1 trillion is spent on Social Security and Disability Pensions. Military related spending ( or Defense Budget) is $746 billion. And then there is Miscellaneous, which is for public schools, traveling and such.
Now, I mentioned deficit when talking about Treasury for National Debt. Deficit is when the amount of something, especially a sum of money, is too small. Quoting from Investopedia- Budget Deficit, “A budget deficit occurs when expenses exceed revenue and indicate the financial health of a country. The government generally uses the term budget deficit when referring to spending rather than businesses or individuals.” To be very honest and incredibly clear, I only understood the smallest part of that. I wanted to state it to give a better understanding. ( Actually, in my notes I hadn’t added this so it’s new and not fully researched- the quote that I stated.) This is what I wrote to help me understand. The budget deficit is when the expenses exceed revenue and indicate the financial health of a country. Revenue is the income from normal business operations.
So, that is all about NAtional Debt- and some parts of deficit. To be very honest, I didn’t have as much understanding and grasp on this like I did on Friday. I know that National Debt is very important, like taxes, so that it can buy supplies for our Medical care and Social Security. It helps pay for a lot of things that will always benefit us. One question though, will we ever finish paying off the expenses- debt? Will it ever reach 0- even though I literally stated that it always rises?