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Anonymous
Anonymous asked in Politics & GovernmentPolitics · 3 years ago

How is it possible that the deficit is going down but the debt is going up?

I watch the news it says the deficit is going down.

I look up debt clocks and they say the debt is getting bigger.

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  • 3 years ago
    Favorite Answer

    The deficit is a measure of how much over-spending we are doing. It's true the deficit is going down, but it's not a surplus. In order for the debt to go down, we need a surplus.

    What you're asking is like asking why, when I spend $100 more than I can on day 1, and decrease my spending by one cent each day, why my debt is still rising. It's because I am still spending more than I can afford, even into day 100. By day 100, I am spending only $99 more dollars than I earn. That still raises my over all debt. Nonetheless, my deficit($99) went down from what it was ($100)

    It's because of the fact there is a deficit that the debt goes up. Deficit means we are spending more than we are taking in.

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  • Anonymous
    3 years ago

    The deficit is a measure of how much more we spend than we take in. The debt is how much money we owe. Even if the deficit goes down, we're still accruing debt.

    Think of it like spending on a credit card. If you spend $100 then you owe that much money. Let's say that the next day you spend $50. The amount which you're spending every day is going down, but now you owe $150, so your debt has gone up.

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  • Anonymous
    3 years ago

    The deficit is on the budget so if last year you had a deficit of $1.2 trillion and this year you had a deficit of $600 billion, the deficit was reduced by 50% but you still added $600 billion to the National Debt.

    As long as we continue to spend more than we earn the national debt will increase

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  • Anonymous
    3 years ago

    Because the deficit is the amount that we borrow annually to fulfill our budgetary obligations. It gets added to the total debt, which is what we owe. The debt will NEVER go down until we collect more revenues than we spend.

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  • 3 years ago

    It's got something to do with the interest on the debt.

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  • Anonymous
    3 years ago

    don't waste your time answering this is one of a group of trolls/spammers that pick a keyword and ask questions with the keyword in one of today's is bedroom another is debt

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