Congress has a big checkbook, and the government spends more money than it brings in. The federal budget deficit is the difference between government spending and government revenue. The federal budget deficit for the first 10 months of fiscal year 2010 is $1.2 trillion, according to the Congressional Budget Office. That deficit, however, is about $90 billion less than the first 10 months of last fiscal year. The overall national debt, or the money that the government has borrowed,has now reached $13 trillion
Where is the breaking point? The White House is planning to reduce the deficit (after the wars are over and taxes are raised.) The debt is manageable as long as GDP is steady. But what if it isn't?
ReplyDelete