For this assignment, please read Special Topic #7 in the textbook (pp. 639-647) titled “The Federal Budget and the National Debt.” The national debt is the sum of the outstanding bonds of the U.S. Treasury. Budget deficits increase the national debt, whereas surpluses reduce it. The national debt reflects the cumulative effect of all prior budget deficits and surpluses. This special topic focuses on the problem of the national debt and the solvency of the federal government. After reading the special topic essay and viewing this video, please answer the critical analysis questions listed on p. 647 of your textbook. Additionally, be sure to answer each of the following questions as part of your overall response: 1. What is the national debt and how large is it? 2. How are future generations affected by debt financing? 3. Is the federal debt approaching dangerous levels? Why or why not? Please answer each question individually in paragraphs, being sure to include the questions themselves in your responses. Your submission should be no fewer than 3-4 pages in length (content only). Some questions may require more in-depth and detailed responses than others, but each response you supply will be evaluated according to the degree to which you defend your views and support them with appropriate examples, illustrations, and/or connections to assigned readings and other course materials. The degree to which you demonstrate attention to careful editing and proofreading (including grammar, spelling, word choice, and sentence structure) will also be evaluated.
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