First please let’s understand (I know that this for some of you is very basic, however for others it may not be that simple): What’s the difference between the debt and the deficit?
The deficit is the difference between what the U.S. Government takes in from taxes and other revenues, called receipts, and the amount of money it spends, called outlays. The items included in the deficit are considered either on-budget or off-budget.
You can think of the total debt as accumulated deficits plus accumulated off-budget surpluses. The on-budget deficits require the U.S. Treasury to borrow money to raise cash needed to keep the government operating. It borrows the money by selling securities to the public.
The Treasury securities issued to the public and to the Government Trust Funds then become part of the total debt.
And here is another way of explaining it:
Definitions and Basics
Government Debt and Deficits, from the
Concise Encyclopedia of Economics
Government debt is the stock of outstanding IOUs issued by the government at any time in the past and not yet repaid. Governments issue debt whenever they borrow from the public; the magnitude of the outstanding debt equals the cumulative amount of net borrowing that the government has done. The deficit is the addition in the current period (year, quarter, month, etc.) to the outstanding debt. The deficit is negative whenever the value of outstanding debt falls; a negative deficit is called a surplus….
The current administration of Pres. Barack Obama will add more debt than all 43 previous presidents combined. That’s truly hard to believe isn’t it?
Watch here Obama says adding $4 trillion to debt is unpatriotic!!
Watch here Obama says–I will cut the Deficit by HALF in my first term!!
Here he will cut programs that aren’t working?
Obama in 2008: We will streamline the budget and stop runaway spending.