Explaining the National Debt, How We Got Here and What It Means for Future Generations
Ask students: Who is affected by the national debt? Why does having a large national debt cause anxiety in these different groups of Americans?
Republicans in Congress are hashing out a new tax cut and spending bill that's projected to add trillions to the national debt. Economics correspondent Paul Solman explains the ballooning national debt, how we got here and what it means for our economy and future generations.
View the transcript of the story.
Key Terms
national debt — the total amount of outstanding borrowing by the U.S. government accumulated over the nation’s history (Dept. of Treasury)
interest — a payment associated with borrowing or lending money
Discussion Questions
- What is the current national debt of the U.S.?
- Who is affected by the national debt?
- Why does having a large national debt cause anxiety in these different groups of Americans?
- Where on the timeline of history did the U.S. see debt balloon? (Hint: see the graph from the video below- what other events did the video mention?)
- How does debt work as it pertains to interest?
Focus Questions
What are the key concerns around the U.S. racking up a high national debt?
Media literacy: What primary sources (in the form of pictures and background video) were used to demonstrate that the U.S. has had a long history of concerns over the federal debt?
Extension Activity
Balance the budget with this budget simulator activity! Today, our debt is approaching levels not seen since the end of World War II. Advocates support balancing the federal budget as a way to bring down the debt. Try it yourself or with a classmate using this lesson plan.
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Republished with permission from PBS News Hour Classroom.
PBS News Hour Classroom helps teachers and students identify the who, what, where and why-it-matters of the major national and international news stories. The site combines the best of News Hour's reliable, trustworthy news program with lesson plans developed specifically for... See More
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