What is National Debt?

Definition and meaning of national debt: The national debt is the total amount of money owed by the federal government of the United States to its creditors, including individuals, businesses, and foreign governments. This debt is the result of borrowing by the government to cover budgetary deficits and other expenses. National debt can be thought of as a burden on the nation's taxpayers, as a large portion of the money borrowed must eventually be paid back with interest. It can also be seen as a means of financing current spending and investments, as the government can use debt to pay for infrastructure projects and other initiatives. Reform-minded individuals view national debt as a risk to the nation's long-term economic stability, as the debt burden must eventually be repaid by taxpayers. This burden can also limit the government's ability to respond to economic downturns or fund new investments in the future. Reformers argue that the government should reduce borrowing and strive to balance its budget, while also investing in programs that will help reduce economic inequality and raise economic growth.