How large is the national debt?
As of July 31, 1957, official records indicate that the national debt of the United States amounted to $272.5 billion. What does this figure tell us? This is somewhat more difficult to answer. It may provide some information concerning the amount of purchasing power which was transferred to government at some time in the past by individuals and institutions. There is, however, no way of knowing whether or not this purchasing power was actually transferred away from the private economy. All, none, or any portion of this purchasing power may have been created in the process of debt issue. The $272.5 billion figure tells us nothing about the real debt which was created, nor does it tell us anything about the amount of real resources which must currently be given up if we choose to discharge fully the debt obligation. The confusion generated by the use of this measure may be readily illustrated by frequently encountered popular statements which claim that each man, woman, and child in the
