What is the difference between the U.S. budget deficit and the National debt?
Each year, the US Government attempts to set a budget and live within its means. And generally fails. When spending exceeds revenue, the government has a deficit for that year. Repeat often enough, and you’ve got yourself a big fat National Debt. Prepare to become depressed. Here’s a graph of how we’ve done each year since 1960: In this graph, a blue line segment means the government ran a surplus for the year, and a red line segment means we had a deficit. One note I’d add: the graph sort of suggests that credit or blame belongs to the occupant of the Oval Office. I would submit that that’s not entirely true. The President submits a budget to congress, but it is our members of congress who ultimately approve spending (and tax cuts/increases). Quite often, our government runs most effectively when the President is of one party and at least one branch of congress is firmly in the grip of the opposition party. Sources: http://ww
