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Article: Debt, Public
- Article from:
- Dictionary of American History
- Author:
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DEBT, PUBLIC
DEBT, PUBLIC
is an obligation of a government. Although individuals are called upon in their capacity as taxpayers to provide funds for payment of interest and principal on the public debt, their private property cannot be attached to meet the obligations if the government fails to do so. Similarly, government property normally cannot be seized to meet these obligations. With sovereign governments, the debt holders can take only such legal action to enforce payment as the governments themselves prescribe.
Public debt is one result of government financing expenditures. It is different from private debt, which consists of the obligations of individuals, businesses, and ...