As said on page 442 of the Edwards textbook, a deficit is "an excess of federal expenditures over federal revenues" or "when federal expenditures exceed revenue". In contrast, debt is the total amount owed to someone. The difference between deficit and debt is that deficit is in one fiscal year for the federal budget and debt is the total amount owed over the years. A deficit is a better measure of government budgeting because a deficit can be made up easier than debt can be.
I disagree; personally I feel that debt is a better measure of government budgeting. Debt shows how much money we owe and have had a deficit over an extended period of time versus a single fiscal year. Overtime the total amount of debt acquired by the U.S. fluctuates showing whether the budget allowed for the amount of debt to decrease or increase.
I agree with Eli that deficit is a better measure of government budgeting. A deficit is when the national government spends more money than it receives in taxes.(pg 442 Edwards) The deficit shows how much money we spent over what we have so then it shows how well the government budgeted that year. If the deficit is low then the government budgeted well and if the deficit is high then the government spent too much money and needs to budget better the next year. Also, as Eli said, a deficit is easier to be made up than debt is.
I disagree that the deficit is a better measure of government budgeting. A deficit is one year of overspending, whereas debt accounts for the total amount of time we have owed someone money. The budget will often show whether the government is looking at this year or at the future of the nation's debt.
This comment has been removed by the author.
ReplyDeleteAs said on page 442 of the Edwards textbook, a deficit is "an excess of federal expenditures over federal revenues" or "when federal expenditures exceed revenue". In contrast, debt is the total amount owed to someone. The difference between deficit and debt is that deficit is in one fiscal year for the federal budget and debt is the total amount owed over the years. A deficit is a better measure of government budgeting because a deficit can be made up easier than debt can be.
ReplyDeleteI disagree; personally I feel that debt is a better measure of government budgeting. Debt shows how much money we owe and have had a deficit over an extended period of time versus a single fiscal year. Overtime the total amount of debt acquired by the U.S. fluctuates showing whether the budget allowed for the amount of debt to decrease or increase.
DeleteI agree with Eli that deficit is a better measure of government budgeting. A deficit is when the national government spends more money than it receives in taxes.(pg 442 Edwards) The deficit shows how much money we spent over what we have so then it shows how well the government budgeted that year. If the deficit is low then the government budgeted well and if the deficit is high then the government spent too much money and needs to budget better the next year. Also, as Eli said, a deficit is easier to be made up than debt is.
ReplyDeleteI disagree that the deficit is a better measure of government budgeting. A deficit is one year of overspending, whereas debt accounts for the total amount of time we have owed someone money. The budget will often show whether the government is looking at this year or at the future of the nation's debt.
Delete