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GOVERNMENT DEBT
As of mid-2009, the gross public debt of the U.S. Treasury amounted to $11.6 trillion.This is not merely because the federal debt is larger than the debt of state and local governments, but also because of the real economic differences
in the use, funding, and ownership pattern of the securities that are issued by federal governments and by state and local governing bodies.The debt of state and local governments amounted to an additional $2.2 trillion.
GOVERNMENT DEBT
As of mid-2009, the gross public debt of the U.S. Treasury amounted to $11.6 trillion. The debt of state and local governments amounted to an additional $2.2 trillion. Borrowing has been a major source of government finance despite the controversy that surrounds its use. By far, the major share of controversy concerns the federal debt rather than the debt of state and local governments. This is not merely because the federal debt is larger than the debt of state and local governments, but also because of the real economic differences
in the use, funding, and ownership pattern of the securities that are issued by federal governments and by state and local governing bodies. The problem of the federal, or central, government use of debt is considered next, followed by a discussion of the use of debt as a means of finance for state and local governments.
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