Sunday, May 17, 2009

Debts, Deficits, Discontent and Discouragement

First, it's important to understand the difference between a "Deficit" and the "National Debt". Not to be condescending, but some people really don't understand the difference and that lack of understanding is one of the reasons we are in such poor financial shape in this country.

The Deficit is the budget shortfall for one year. The Nation Debt is the cumulative effect of all of the Deficits combined, or the total amount of the country's debt that, incidentally, will have to be paid back. Somehow.

I remember Ronald Reagan lamenting that the total National Debt was $1 Trillion. In 2009, the deficit (the shortfall for 2009 alone) will be in excess if $1.85 Trillion.

Think about that. In 2009, the budget shortfall for a single year will be nearly 2 times what the entire National Debt was less than 30 years ago.

This is a problem that's just getting worse by the day; we're going to need a bigger graph.

1 comment:

eddiebear said...

Even worse is this.