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... ” Since you borrowed the money, this puts you in debt, or state of owing money, to the loaner. On top of the debt you have interest, or the fee charged for letting you borrow the money. ... Not only does this increase your debt owed, but the interest also rises. The higher the budget deficit, the more the debt grows. At some point the interest payment on the debt is bigger than all of the items in your budget. ... What would happen if we applied this scenario to the nation? ... Right now Federal spending is greater than revenues, thus placing the nation in a continual state of debt. ... This amount of debt has changed dramatically in the past few decades and needs to be taken more seriously.
How does the national debt affect you? Having large continual deficits means a rise in the national debt, the gap between Federal spending and revenues. ... Secondly, the Federal government has become dependent on foreign savers to finance the deficit; however who wants to be in debt to foreign savers?
Approximate Word count = 825
Approximate Pages = 3.3
(250 words per page double spaced)
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