National Debt

Once again, Congress and the White House are wrangling over an increase in the debt ceiling. The stakes are high. Failure to do so would lead to a default on the federal debt, which could have far-ranging economic consequences. If history repeats, a deal will ultimately be reached. In the meantime, political uncertainty could disrupt financial markets—and also create investment opportunities. Says Lars Schuster, institutional portfolio manager in Fidelity’s Strategic Advisers group: “It’s unnerving to see these headlines. The good news is that historically volatility in the markets tends to…

Introduction National debt is a topic that often dominates financial and political discussions. Despite its ubiquity, many people are unaware of what it truly means and the various metrics used to measure it. In this article, we will explore the definition of national debt, the significance of the national debt-to-GDP ratio, the national debt-to-income ratio, and how these indicators are used to assess a country’s financial health. What is National Debt? National debt, also known as public debt or government debt, is the total amount of money owed by a…