For years Americans have heard about the dangers of the national debt from TV talking heads as well as politicians on both sides of the aisle. But what exactly is the national debt, and how does it differ from the deficit? And just how frightening are these figures that top out in terms of billions and trillions of dollars? Along with defining “the debt” versus “the deficit,” this quick video also explains why GDP plays a major role in any proper assessment of U.S. debt.
Questions:
- Why is it important to know the difference between “the debt” and “the deficit”?
- How does GDP help to put the nation’s debt into perspective?