What is their difference? Why deficit is lower than debt? Can it be reversed? Please Register or Log in to view the hidden image!
Debt : Money that is owed to others by you or the government. Deficit: The amount of money that is needed that the income didn't cover. The government has taxes that is supposed to cover all its debts but they overspend and never have enough taxes to pay the extra amounts they use so that is the deficit.
Wow. Look pay attention. Deficit is how much the country is in the RED (Negative income) each year. DEBT is the accumulation so far of that BAD PRACTICE(people think it's normal just cause every country does it)...I.E the TOTAL BORROWED. Deficit is how much a country spends MORE than it takes in for a year. Including INTEREST on money it already owes(can you see the snowball effect banks have on people, countries, idiots?) DEBT is DEBT! How much that country owes to the lenders. Could be Banks, IMF, Individuals and other countries.
Sometimes but when the debt is 16 trillion dollars there's no way that that amount can realistically get paid down for two important reasons. One, and the most important , is that Congress will keep spending more money every year so that the debt can never be paid off. The other reason is that the people making most of the money are not paying any taxes or very little because Congress gives them tax breaks and loopholes to use.
