Federal_Budget_Deficit

Federal Budget Deficit The Federal Budget Deficit How in just a few years can the federal budget go from a surplus, to over six trillion dollars in debt' What has happened in just a few years to cause such a substantial increase in our national debt' How can we fix this dramatic problem' These are all important questions that must be answered in order secure a safe future for our government and economy. What is a budget deficit' Well simply put, it is when you spend more money this month than your income. So instead of simply ceasing your spending,, you decide to borrow money, and now you have a deficit or a debt. Well, if you keep spending more than you earn and repeat this cycle over many months, before soon all you can do is pay for the interest on your loans. Therefore each month your debt is increasing, growing larger and larger. Until, one day your interest is more than you can borrow and you have to file for bankruptcy. Why does our country, one of the richest nations in the world, have such an enormous debt' Our country had a repetition of annual deficits from about 1962 to 1997. In 1997 debt, money, government, surplus, economy, budget, spending, public, over, deficit, tax, off, increase, federal, surpluses, simply, problem, people, pay, larger, interest, cut, back, time, therefore, recession, proposed, paying, past, one, once, now, military, just, iraq, important