Chapter 14 Outline
A. The National Debt over Time
1. The national debt is the accumulated total of the federal government's deficits and surpluses that have occurred over time.
2. The national debt is composed of various financial instruments.
a. Most of the national debt is marketable.
3. Private investors hold about 66 percent of the national debt.
a. Over time, the amount and percentage of the debt held by foreign investors has grown.
4. The national debt has grown tremendously since 1929.
a. From 1929 until 1945 the debt grew more quickly than GDP.
b. Following World War II, the debt grew more slowly than GDP until 1981.
c. Since 198i, the debt has grown more rapidly than GDP.
1. Between 1981 and 1994 the debt increased by more than during the entire history (to 1981) of the United States.
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