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Article: National Debt (Issue)
- Article from:
- Gale Encyclopedia of U.S. Economic History
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NATIONAL DEBT
(ISSUE)
The national debt is the amount of money owed by the U.S. government to its creditors, which may include private individuals, corporations, banks and other financial institutions, as well as foreign governments. As a result of better communications technology, improved information processing, and cheaper enforcement costs the ability of the federal government to collect taxes improved over the years. This made lenders more willing to fund the national debt and enabled the government to borrow at favorable interest rates.
The United States began its existence with a large (for the time) national debt of $75 million. This debt was the result of a deliberate policy ...