Understanding is the First Step to Solution
Who caused the Deficit?
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How the U.S. Federal Debt and Deficit Differ and How They Affect Each Other
The U.S. Federal Deficit is when government spending is greater than revenue received for that year. In Fiscal Year 2009, the budget deficit will be $1.75 trillion. The FY 2010 deficit will be $1.17 trillion.The U.S. Federal Debt is over $11 trillion. This is nearly double the debt in 2000, which was $6 trillion.
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Budget deficit tops $1 trillion for first time
The federal deficit has topped $1 trillion for the first time ever and could grow to nearly $2 trillion by this fall, intensifying fears about higher interest rates, inflation and the strength of the dollar.The deficit has been widened by the huge sum the government has spent to ease the recession, combined with a sharp decline in tax revenues. The cost of wars in Iraq and Afghanistan also is a major factor.
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The U.S. National Debt and How It Got So Big
What the U.S. National Debt Is:(Updated January 2009) The U.S. debt is $10.6 trillion, and is the sum of all outstanding debt owed by the Federal Government.
Over half is the public debt, which is owed to individuals, corporations and foreign governments, who have purchased Treasury Bills, Notes and Bonds.
The rest is owed by the government to itself, and is held as Government Account securities. Most of this is owed to the Social Security and other trust funds, which have been running surpluses. The securities are a promise to repay these funds when Baby Boomers retire over the next 20 years.
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