America's Debt Costs Go Up
Listen
Vocabulary
Article
The United States owes a lot of money. The government borrowed money. Now it must pay this money back. The cost to pay back money is going up. This is bad news for America.
What is Borrowing?
Borrowing means taking money from someone. You promise to give it back later. The government borrows money from other countries and from people. When you borrow money, you must pay extra money back. This extra money is called interest.
Interest Rates Are Higher
Interest rates went up. This means borrowing money costs more now. The government must pay more money back. It is harder to pay back debt when interest rates are high. Many people are worried about this.
The Debt is Very Big
America's total debt is now forty trillion dollars. That is a huge number. This is more money than before. Experts say this is a problem. The government must find ways to pay this money back.
What Happens Next?
People want the government to fix this problem. Some want to spend less money. Some want to make more money. Leaders must make hard choices. Everyone agrees that this is important.
Discussion Questions
- Do you know what interest is? Can you give an example from your life?
- Why do you think the government borrows money?
- If you borrow money, do you have to pay extra? How much?
- Do you think forty trillion dollars is a big number? Why?
- What can a government do to pay back money it owes?
Open the full interactive lesson with tap-to-hear on every word →