Archive for January 2013

There’s often confusion about the definition of the national debt and what it actually is. In the simplest terms, it is the debt the nation has accumulated over many years of spending more money than it collects through taxes and other sources. Our founding fathers believed it was immoral to spend more than the government…

The dictionary defines deficit as a “shortage of something needed or required.” In the case of the U.S. Federal budget deficit, the term refers to the difference between the amount of money collected through taxes and earned interest, and the amount of money the government spends each fiscal year. Inflow compared to outflow. A simple…