When a government or organization spends more money than it has available, a deficit is created. In some cases, a government may borrow money to fill the deficit. This borrowing translates into gross federal debt, which increases the amount of national debt.
Two components typically make up this type of debt: money owed to the government by the government and money borrowed by the government from foreign or domestic investors in an open market.
The Concord Coalition reports that the national debt is more than $15.5 trillion and is increasing rapidly. To better understand what national debt is and how it may be addressed in the classroom, please consult one or more of the following resources:
- The National Debt vs. The Deficit
- I.O.U. – An Introduction to the National Debt
- U.S. Department of Treasury: National Debt Resource Center
- The National Debt – Time to Collect
- U.S. Debt Reduced
- National Debt Lesson Plan
- National Debt
- Sales Tax, Real Estate Tax, Income Tax, Sin Tax…
- Look Who’s Footing the Bill!
- A WebQuest on the Budget, Deficit & Debt
- Big Money: Intuition about big numbers using the national debt
- The Joy of Economics: The National Debt
- Teaching Kids about the National Debt
- The National Budget Simulation
- The Concord Coalition: National Debt
- Treasury Direct Kids – Bureau of the Public Debt
- Treasury Direct Kids – Beginning of US Debt
- Treasury Direct Kids _ What is Debt