Of Deficits and Debt
Aside from taxes, few topics in economics excite more emotion than deficit spending and the national debt. Citizens decry the fact that the government spends more money than it takes in (at least, when the party they oppose is doing it), but they blanch at the idea of decreased services or increased taxes. Each of the two major political parties accuses the other of fiscal irresponsibility, and they are both correct.
Deficits occur when government expenditures exceed revenues. The practice of maintaining or increasing expenditures when revenues will not cover them is called deficit spending. Surpluses occur when ...