People often ask me about the difference between debt and deficit. My answer (oh all right, the answer I found on the internet) is:
The National Debt is the total amount of money owed by the government; the deficit is the yearly amount by which spending exceeds revenue. Add up all the deficits (and subtract those few budget surpluses we've had) and you'll get the current National Debt.
Well, all I can say is we seem to have a lot of both.
And what does the future hold for Europe?
According to Angela Merkel, all of us face ten years of hardship before we are free of the debts we piled up during the boom years. “This debt crisis will not simply go away. It will certainly be a decade before we are in a better position”.
For what my opinion is worth, I think she's certainly right. And how refreshing to hear a politican in office actually trying to tell the truth.
The National Debt is the total amount of money owed by the government; the deficit is the yearly amount by which spending exceeds revenue. Add up all the deficits (and subtract those few budget surpluses we've had) and you'll get the current National Debt.
Well, all I can say is we seem to have a lot of both.
And what does the future hold for Europe?
According to Angela Merkel, all of us face ten years of hardship before we are free of the debts we piled up during the boom years. “This debt crisis will not simply go away. It will certainly be a decade before we are in a better position”.
For what my opinion is worth, I think she's certainly right. And how refreshing to hear a politican in office actually trying to tell the truth.
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