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Wait, what? No; that's not how that works at all. Where did you read that? The shortfall between Federal government spending and tax receipts is the deficit. T
by NovemberWhiskey 5y ago
Wait, what? No; that's not how that works at all. Where did you read that?
The shortfall between Federal government spending and tax receipts is the deficit. The government has to borrow that money, which it does by having the Treasury issue debt securities.
- nl 5y agoThis is correct. I attempt to provide references here: https://news.ycombinator.com/item?id=27685631 https://news.ycombinator.com/item?id=27685631 Not sure where these claims come from either.
- selimnairb 5y agoFederal government deficit=private sector surplus. The money is conserved. Federal surplus=private sector surplus. People who want to balance the federal budget either don’t know what they are talking about, or are cynically trying to redistribute money to the wealthy.