Term paper: National Debt The concern I have when I talk about the economy is the national debt crisis. There was a time when the United States was able to maintain a balanced budget. In fact, the only times a budget deficit occurred were in times of war or other catastrophic events. The government, for example, ran deficits during the 1837 recession, the Civil War, the depression of the 1890s, and World War I. However, as soon as the war was over, the deficit would be eliminated. When a government spends more than the revenue it collects from taxes, tariffs, and other fiscal revenues, the country must borrow money to cover the deficit it faces, which, when accumulated over the years, becomes the national debt. Furthermore, there are two types of national debt, domestic and foreign debt. Today, the debate over the national debt crisis continues, and many US citizens are worried about their financial future. While both the Democratic and Republican parties have their own opinions on how to fix this problem, a decision needs to be made to fix it before serious repercussions. The U.S. national debt affects consumers every day, but probably most noticeably Americans who face higher taxes. , higher interest rates and cuts by the US government on services, weaker labor markets and ultimately inflation. National debt exists as a result of government shortfalls or deficit budgets in which government expenditures exceed its revenues. Domestic debt includes the amount borrowed from sources within the country. The government raises this money by selling bonds, bills, stocks, and government. In addition to domestic debt, countries are also likely to have external debt. External debt is money borrowed from foreign money… at the heart of the paper… citizens must take responsibility and take action to find ways to help the nation. The balance of the economy is in the hands of those who abuse power. Educating and raising awareness about the issue of the national debt will help Americans understand and motivate them to help the government find a solution to this problem. The government must create a balance between spending and revenue before deficits continue to grow. This country has a lot to offer but at the same time it does not have the right tools to have a stable economy. Health care reform that ensures a cut in excessive spending will not only provide health care to children and uninsured adults, but will also help eliminate the possibility of making America the largest debtor. To achieve this, the need to create a better public understanding of budgetary difficulties is vital.