What do we mean by the words deficit and debt? The deficit reveals whether the government has balanced the budget in any year. Our federal government is addicted to deficits. The federal government has spent more on programs and services than it has collected in taxes thirty-one out of the last thirty-five years. But, don’t be fooled by any news headlines boasting about balance the budget. Simply balancing the budget, although it helps not to add to the overall debt, will not solve the long-term financial problems of Social Security and Medicare.
The debt of the federal government reveals how much money the government has borrowed in total.
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