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Public debt is the money owed by any one branch of the government. National debt is the money owed by all the branches of government.
The biggest disadvantage of public debt is the fear of it leading to excessive inflation. The advantage of public debt is the leveraging of public assets to provide servic…es.
Debt held by the public is issued by the federal government and held by nonfederal investors including the Federal Reserve. This is the financial liability for the government'…s borrowing which results in interest paid out http://www.econedlink.org/lessons/index.php?lid=184&type=educator
• It may lead to wasteful government spending .. • It creates inflation • It is a burden to future generations • It is the reduction of future consum…ption and savings • It dampens incentives to do productive or business ventures
Politicians get elected by making voters happy. Voters always want more public spending and less taxes. The only way to have both of those things at once is to borrow money. S…o politicians borrow money, and get reelected. People don't like to pay tax, but love to enjoy services provided by the government. So, politicians tend to endorse lower tax while maintaining the same or increase public services. Obviously, you can't have both at the same time without bring in more cash somehow.
Public debt increases whenever the government borrows more money than it pays back.
Exeternal debts and internal debts
Need for public debt: During period of inflation and deflation it is a sound fiscal weapon.
Public debt means that your town, state or country is spending more money each year than it is 'earning' (i.e. coming in form taxes). To do this your town, state or country …has to borrow money and then pay interest on these borrowings in just the same way you would have to it you borrowed money yourself. If steps are not taken to reduce the overspending and pay back the money borrowed the sum required for interest gets larger and larger leaving less money for your town, state or country to spend on roads, schooling, security etc. It becomes a vicious, unsustainable cycle which eventually means that your town, state or country can no longer pay back the debt or deliver public services - the town, state or country goes bankrupt. At this point your country's currency becomes worthless and hyper inflation sets in and business and commerce stops. Further the people that have loaned you the money for the debt now come in and take charge of your town, state or country and control it ans squeeze it to get their money back no matter how much this hurts the people of your town, state or country. You do not want to go there ! public debt is BAD.
The Public Debt is debt that is owed by the Government of the United States. The External Debt is that is owed to foreign countries. The current Public Debt is $16,738,541,240…,281.19 that over 16 Trillion dollars. The external debt is approximately $15,940,978 that is a lot less than the public debt.
You can learn about the public debt from a variety of locations. This includes looking up data that is supplied by the National Audit Office or by looking at literature from t…he National Debt Organisation.
The Canadian public debt, which is also called the "national debt" or the "public debt" in Canada. The cost of the debt is constantly changing. You can find up to date informa…tion from a Canadian based website called Debtclock (the website will end in a Canadian domain of .ca)
The public debt is the debt that the United States government owes to other countries.
The Federal Government spends more money than it collects in taxes. In some cases, such as in wartime, the Federal government needs to spend a lot of money recruiting soldiers… and sailors, buying guns and weapons, and conducting the war. During peacetime, the government should cut spending, but since the 1920s or so, the Federal government has been giving money away to individual citizens as welfare. As welfare has expanded and other government spending has ALSO increased, tax collection hasn't kept up with the spending.