Lesson Overview and Introduction
The United States’ gross national debt, now more than $31 trillion dollars, is a significant concern of economists and policymakers. The national debt is the total amount of money that the federal government owes to its creditors, or those who have loaned money to the U.S. government. In this lesson, students will explore the difference between debt and deficit, two similar‐sounding terms. (Deficit is the annual shortfall between government spending and revenue, and debt is the total of all deficits.) Students will then examine the causes and consequences of the national debt and how the debt affects the economy, including interest rates and government support for programs. Students will also examine the policy options for addressing the debt and the trade‐offs and political considerations that come into play. By the end of the lesson, students will have a solid understanding of the impact of the growing U.S. debt on the economy and its implications for future generations.