Government Debt

Public debt occurs when the government spends more money than it receives. Government debt occurs as municipal debt, national debt or sovereign debt. To finance government debt, governments issue securities and government bonds. Just as consumers need to manage their credit and debt to avoid bankruptcy, so must government use fiscal restraints. … Keep Reading → Governing agencies with too much debt often resort to higher taxes and cutting services to meet their financial obligations. Learn more about how government debt affects the average consumer in this Hub.

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