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To: simon says what
And if expenditures exceed revenues, and we're in debt, won't that just make us more in debt by that amount?
235 posted on 08/10/2005 5:22:43 PM PDT by inquest (FTAA delenda est)
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To: inquest
And if expenditures exceed revenues, and we're in debt, won't that just make us more in debt by that amount?

No... this is another way the government keeps from us the true size of their spending. The deficit number refers to on-budget items. Certain off-budget items such as Social Security are not incorporated into this number. We have been running a surplus for Social Security for decades. The government throws this money into the general revenues and issues debt against it. This lowers the actual deficit but increases the debt. Our government's accounting would be considered criminal if used by any corporation or individual.

Good description here: What is the difference between the debt and the deficit?

237 posted on 08/10/2005 5:29:05 PM PDT by simon says what
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