Korelin Economics Report

Federal Deficit and Federal Debt are two different animals

Anyone who says that deficit shrinkage alone is great for the U.S. is not telling the whole story.

Here are the true facts:

Deficit: The amount by which the government’s total budget outlays exceeds its total receipts for a fiscal year. US Senate Budget Committee

This year, FY 2013, the federal government in its budget estimated that the deficit would be $973 billion. The latest deficit estimate, from the Congressional Budget Office, is $642 billion.

The federal debt increases each year by more than the deficit. For FY 2013 the federal budget estimates that the federal debt will increase by $1,199 billion. That’s $226 billion more than the official “deficit.” See Federal Debt.

Why won’t all politicians tell us the whole story?

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