A nation’s annual budget deficit is the difference between what the government takes in from taxes and other sources and what it spend annually. To make the distinction, the national debt differs from a budget deficit in that it is the total amount that the federal government owes because of money it has borrowed by selling bonds or other securities, throughout the years. It is the total of all money owed to individuals, corporations, …showed first 75 words of 604 total…

…showed last 75 words of 604 total…In summary, the national debt is a function of a government spending more than it takes in taxes. In order to not penalize future generations, this situation cannot continue. Prior to the 1960s, Americans followed a debt-free practice, except in times of major war threats. The United States now faces a national debt totaling more than $5 trillion dollars. Instead of boasting about deficit surpluses, the government should aim to reduce the national debt whenever possible.