The National Debt: A Discussion of the Issues Involved (CRS Report for Congress)
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| Release Date |
Feb. 12, 1976 |
| Report Number |
76-19E |
| Report Type |
Report |
| Authors |
Jeffrey A. Harbaugh |
| Source Agency |
Congressional Research Service |
Summary:
The practice of government borrowing from the public to finance
its activities has been a controversial area for decades. The shades
of opinion on national debt have ranged from those who condemn deficit
financing as an unmitigated evil eventually leading to impoverishment
and bankruptcy to those who view a rising national debt as an indicator
of prosperity and a stimulator of economic growth. Why is there such
a wide span of opinion? Interpretations of national debt statistics are
very much a part of one's outlook and thinking on government spending
and the proper role of government in the economy. Speaking in general
terms, the less scope afforded governmental intervention in
the economy, the less favorable is the outlook on deficit spending.
This paper is an attempt to integrate a great deal of diverse material
on the national debt into a cohesive form. It is meant to serve
as a briefing for those not familiar with the issues engendered by the
national debt and deficit spending. To the extent that we may have
attempted to integrate too much material, the objective of cohesiveness
may have been compromised. Indeed, certain sections of this
paper could stand alone as examinations of specific parts of the general
topic.
This paper is not intended to provide a specific answer to the question,
"HOW big can the national debt become?" To our knowledge, no
one has attempted to specify an amount in answering this question.
Rather, the discussion revolves around the financing of the deficit in a
given year, and the effect it may have on the economy.
Because of the wide range of subjects covered, this paper is not
intended to be a definitive, comprehensive study; especially in the
area of macroeconomics, we have oversimplified. However,
this is in line with the objective of the paper. Those interested in
a more sophisticated examination of the economics involved should
refer to texts on the subject. For those seeking more specific material
on the national debt, we refer you to two Congressional Research
Service multiliths- -74- l72E, National Debt of the United States:
Historical Survey and Analysis, and 75-179E, Public Debt Limit Legislation:
A Brief History and Some Arguments for and Against It.
