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DEBT VS. DEFICIT:
WHAT'S THE DIFFERENCE?
The deficit is the annual difference between government spending and government revenue.
The debt The total amount of money that a country's government has borrowed.
Debt-to-GDP ratio: metric comparing a country's public debt to its gross domestic product (GDP).
US Nominal GDP: 28 Trillion (Q4, 2023)
We now pay nearly $1.2 trillion per year in interest on the debt, about 23% of all revenue collected by the US govt goes to paying interest on the debt.
Without spending restraint, Americans could face European-style high taxes.
The average worker in Europe pays $12,000 more in taxes each year than an American worker
Each color shows $1T getting added to the national debt.
Other Terms to Know
Outlays: The actual spending of government funds, typically categorized into various sectors like defense, education, and healthcare.
Revenues: The income received by the government, mainly from taxes and other fees, which is used to fund its activities and services.
Non-discretionary / mandatory spending: Expenditures mandated by law, like Social Security, Medicare, and national debt interest, do not require annual congressional approval.
Discretionary spending: Decided annually by Congress through the appropriations process, covering areas like defense, education, and transportation.
Federal Budget Projected Spending Trends:
Federal Budget Revenue Trends Overview:
A Trillion Dollars Visualized
$10,000 Dollars
$100 Dollars
$100 Million
Dollar Pallet
$1 Million
Dollars
$46.7 Million
Couch
$1 Billion
ARE YOU READY FOR A Trillion Dollars?
“NO FLIPPIN’
Way!”
$20
Trillion
$1 Trillion