Ebbs and Flows of Federal Debt. CRS Report for Congress

摘要

Financing the obligations of the United States has always been a central concern of Congress and the President. Levels of government spending and revenue collection are a source of congressional debate in every fiscal year. Policy decisions and economic growth also play a large role in influencing federal debt levels over time. Most recently, debate over the Emergency Economic Stabilization Act of 2008 (P.L. 110-343) included concerns about increasing debt levels and raised some questions about the future fiscal health of the country. Observations of historical trends can illustrate the reasons behind large changes in debt levels. Ultimately, there are many implications to consider when setting policy initiatives and agendas with regard to federal debt. Understanding ebbs and flows of federal debt levels can be useful in synthesizing how budget policy affects the debt outlook. This report will define the measures of debt, discuss the mechanisms of how debt levels change, and use historical examples to illustrate the factors causing debt movements over the last seven decades.