The article explores the complexities of U.S. government debt, emphasizing that while debt is normal for governments, misunderstandings about it have proliferated. Key drivers of debt include military spending and tax cuts for the wealthy. The article clarifies the difference between the national deficit, which occurs when spending exceeds revenue, and the overall debt, which grows as deficits accumulate. It presents a list of quick facts to aid discussions about national finances and debunk misinformation.
Governments have been operating through loans and debt ever since humankind invented governments. As long as the government can pay off its debts, it can continue to operate.
If the federal government spends more money in a year than it brings in through taxes, it will have a budget deficit that year. If it brings in more money than it spends, it will run a budget surplus.
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