| Chapter 14 Outline |
| VI. THE NATIONAL DEBT |
| 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. |