U.S. Economy 101: national debt vs. national deficit | Just The FAQs

– You’ve probably heard that the U.S. government
has a giant deficit. Well, it’s true. But what exactly is a deficit, and how is it different from debt? Deficit is defined as an annual difference between government spending
and government revenue. Every year, the government takes in money in the form of taxes and other income, and then spends it on
things like Social Security, national defense and health care. When a government spends
more than it takes in, it’s running in a deficit, and when a government
earns more than it spends, it’s running a surplus. The national debt is something different. It’s the total amount of money that the U.S. federal government owes to its creditors, citizens, foreign governments, and more. In 2019, America’s debt stands
around $22 trillion dollars, which is considered the
largest debt in the world. Some argue this isn’t too
big of a problem right now because credit is cheap and
foreign countries are eager to put money into U.S. debt. But others warn that increasing debt could jeopardize the economy in the future and put at risk Social Security and other benefits for
younger generations. And with each year,
the national debt grows by accumulating the deficit
from the previous year. It’s a cycle that’s hard to break, but it’s essential to do so
if we want to put our nation on a better path for economic growth.

8 thoughts on “U.S. Economy 101: national debt vs. national deficit | Just The FAQs

  1. Our Gross national product is perversion of every kind , mental illness , and psycho killers thanks to over regulation , over restriction and ridiculous over policing on every level ! To bad we can't export that we would end our debt and be the richest country on earth !

  2. After 2029, I honestly don't see how this is going to work. I saw a report where economist predicted it will be between 1.5-2 trillion annually, adding to a massive pile of debt already accumulated.
    I either don't understand it, or I do and the US will be in trouble starting in 2030.

  3. Social Security is NOT an entitlement. Get rid of useless entitlements, now, to shrink the deficit. There are no means to tax an economy into prosperity.

  4. We have a massive deficit and debt problem for this country! It's just unfortunate too many uneducated Americans want more social programs rather than living within our means. You don't prosper by spending more than you bring in.

  5. Also running on a deficit just means you're adding to the debt. How about u just say that and propose a solution… Like not paying for health care for eveyone or the dumb idea of free college

  6. ☝️ Tax the rich.. sins tax for tabacco & alcohol to create revenue for healthcare … fix the trade deficit … revitalize the manufacturing sector & export … create more jobs … infrastructure development … start lowering the expenses & pay some of the debts…

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