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This chapter provides a comprehensive examination of U.S. national debt and its deficits, analyzing historical trends and current projections. It features figures illustrating the national debt as a percentage of GDP, the distribution of debt held by domestic and foreign entities, and comparisons with other countries. Key data sources from the White House, Congressional Budget Office, and OECD are utilized to highlight fiscal policies, interest rate impacts, and potential budgetary reforms. Understanding these dynamics is essential for addressing future economic challenges.
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Chapter Sixteen: Deficits and Debt
Figure 16.1: U.S. National Debt as a Percentage of GDP Debt held by Public/GDP Source: Whitehouse.gov
Figure 16.2: Domestic and Foreign Holdings of U.S. Debt Total Debt Source: White House Office of Management and Budget, Economic and Budget Analyses, Table 6–7
Figure 16.4: Interest Payments as a Percentage of Total Federal Outlays Source: BEA.gov
Figure 16.5: The Interest Rate on 10-Year Treasury Bonds Source: St. Louis Federal Reserve Bank
Figure 16.6: Ownership of Gross Federal Debt Source: Treasury Department, 2013
Figure 16.7: Foreign Holders of Gross Federal Debt Source: Treasury Department, 2013
Figure 16.8: Debt-GDP Ratios, an International Comparison Japan Greece Italy U.S.A Germany Canada United Kingdom Source: OECD, www.oecd.org
Table 16.2: EU Deficit and Debt Levels in 2012 (percentage of GDP) Source: www.oecd.org
Figure 16.9: Projected Annual Deficit as a Percentage of GDP Source: Congressional Budget Office, 2013
Table 16.3: Selected Budgetary Reforms, Congressional Budget Office Source: CBO, 2012