National Debt
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National Debt
National debt is the total amount that the federal government owes because of money it has borrowed by selling bonds or other securities. The national debt exists because the government's expenditures often exceed its income from taxes. In such situations, the government sells bonds to get the extra money it needs. It must repay the amount of the bonds on a specific date, and it must also pay interest on this indebt ness.
Government debt differs from private debt because the government is not required to post any collateral (pledge of security) to guarantee payment. However, the U.S. government has always repaid loans according to polls taken in and before 1980.
The United States debt originated in the 1790's when the newly established federal government assumed debts that the individual states had run up during the Revolutionary War. Wars have been by far the most common cause of increase in the United States National Debt...