Return to Transcripts main page

CNN Live At Daybreak

Ask CNN: What is the National Debt?

Aired July 31, 2001 - 07:55   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)

BETTIE THIBODEAUX, GREENWOOD SPRINGS, LOUISIANA: My name is Bettie Thibodeaux. I'm from Greenwood Springs, Louisiana. And my question to CNN is: What is the national debt? Who is it owed to? And who did we borrow it from? And why was it allowed to become so large?

DR. RAJEEV DHAWAN, DIRECTOR, ECONOMIC FORECASTING CENTER, GEORGIA STATE UNIVERSITY: Well, Bettie, national debt occurs when the federal government spends more money than it has collected in taxes which means they have to finance that deficit by floating bonds. These bonds are either held by people within the country or by the institutions in the country or by investors abroad. Currently, 60 percent of the debt is owned by the people within this country, and it has become very large because we ran a lot of big deficits in the late '80s and the early '90s.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com