bThe staggering United States debt has a direct impact on every American, yet few are aware of where the debt came from and how it affects their livesb br The United States has a debt problem--we owe more than 18 trillion while our gross domestic product, the value of all goods and services produced in America, is only 17.5 trillion. To pay down the debt, some recommend austerity, cutting federal expenditures. Others suggest increasing taxes, especially on the wealthiest Americans. In iUnderstanding the National Debt What Every American Needs to Knowi, economic historian Carl Lane urges that the national debt must be addressed in ways beyond program cuts or tax increase alternatives, but change can only occur when more Americans understand what constitutes our debt and the problems it causes. The gross national debt is composed of two elements the public debt and intragovernment holdings. The public debt consists of bonds, bills, and notes purchased by individuals, banks, insurance com