There’s not really a lot of good about debt. Except for creditors.
Image by Daniel Fishel © The Balance 2019
- Deficits add to the national debt, while surpluses reduce the debt.
- When a country’s debt-to-GDP ratio gets too big, it destabilizes the economy.
- The annual debt is higher than the deficit because Congress borrows from retirement funds.
- Looking at deficits by year shows how events influenced the United States’ need to borrow money.
“The U.S. budget deficit by year is how much more the federal government spends than it receives in revenue annually. The Fiscal Year 2020 U.S. budget deficit is expected to be $1.1 trillion.” – The Balance
“But never has a powerhouse like the U.S. willfully set out on an open-ended deficit spending binge at a time of economic strength.”
“So where will the deficit spiral staircase lead? Here are three plausible scenarios, with the latter two more likely:
- Wake-Up Call
- The Japan Trap
- Titanic Collapse
Here’s what this Investor’s Business Daily 2018 article said.