Why does the national debt fall on the government and not private corporations?

Answers:4   |   LastUpdateAt:2017-03-21 18:42:16  

Asked at 2012-08-05 01:03:02
I've read that the trade deficit creates debt because we are importing more than we are exporting, but aren't corporations doing the importing/exporting transactions? Where does the treasury come in by selling bonds to, for example, China? How does trade deficit yield selling bonds, rather than just cash transactions? For example, US companies pay Chinese companies x amount of money for goods/services, and China pays US companies z amount of money for goods/services. Why doesn't it work like that?
Answer1ShondraeAnswered at 2012-08-13 16:03:37
You're mixing everything . Go and see what the national debt includes and what does not. It is only money the government borrows . The trade deficit has nothing to do with it. Indeed , the debt does not fall on the government, which falls on U.S. taxpayers. The government never has money just need the money of others.
Answer2Answered at 2012-08-17 17:59:03
You are talking about two different "deficits". Not the trade deficit is the difference between imports and exports, as you said . There is also the budget deficit, which is the difference between how much the government spends on services and how much is taken in ( by taxes and other sources). The budget deficit is what the government is liable, not the trade deficit.
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