What is a budget deficit? What is a surplus? A budget deficit is an excess of expenditures over revenues. This means that the country as a whole (I like to say the Government) has spent more money than it has brought in. A budget surplus, as you can guess, is when revenues exceed expenditures. Over recent years, the economy has experienced both of these trends. The economy has seen a surplus and a deficit and we are currently in a deficit right now. In recent years, the government has spent more money than it has brought in. A budget surplus or a budget deficit can be attributed to three factors: (1) An increase in expenditures (2) A recession (3) A decline in revenues
             The federal deficit, as of right now, is at 7 trillion dollars (3). One trillion dollars is 1,000 billion dollars, so that means 7,000 billion dollars in debt. That is such an unimaginable number. One reason for this huge number is the increase in expenditures. A lot of money spent happened unexpectedly due to the Iraq War (war not being a usual expenditure) and the terrorist attacks on 9/11/2001. The Department of Homeland Security was created and had to be funded because of 9/11 (B). It was created in 2002 and its funding has increased since its inception. The Department of Defense saw a major increase in it's funding during 2002 and saw a 45 billion dollar increase the next year (A). Besides the increase in spending, the National Debt has grown. "Last year the government spent 318 billion on interest payments." (3). When you're spending 318 billion dollars on money you've borrowed, my hunch is that you will never ever ever never ever be able to pay your debt off (well maybe, hopefully we can). And that's only interest! And since there is a deficit, the government keeps borrowing and the National debt keeps growing. To put this into perspective, the government paid 318 billion on interest paym
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