The Difference between Debt and Deficit
Its actually pretty simple…
A deficit is the yearly difference between expenditures (government spending) and revenues (taxes). It is the yearly sum of money owed.
The national debt is the accumulation of annual budget deficits. It is the net (total) sum of money owed.
Note: The total national debt under George Bush II tops out at $10.6 trillion (not shown on this graph) nearly doubling from the $5.6 trillion that it stood at when he initially took office.
To see what type of spending under Bush II caused the national debt to double, click here.
To understand how a sovereign debt crisis works, click here.
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