What is the National Debt?
The United States government receives revenue and spends revenue. When the federal government is gaining more revenue than it spends, a surplus of government funds exists. Conversely, when federal spending is higher than the amount of revenue being gained, then a budget deficit occurs. The total amount of the budget deficit is what is known as the national debt. On the surface, it sounds pretty similar to our debt on an individual consumer level, but it’s not.
The major difference here is that Congress gets to decide what to tax, how to spend and whether or not they are going to pay the federal debt. While presidents have a right ...