National Debt and Deficit

National Debt

(33 tril.) The total amount of money a government owes.

Budget Surplus

The positive difference between government spending and revenue in a given year.

Budget Deficit

The negative difference between government spending and revenue in a given year.

Reducing Deficits

The act of reducing government spending and increasing revenues to decrease budget deficits.

Create Money (Reduce Deficits)

The process of 'creating' money to give to banks or printing money, which can help reduce deficits, but excessive printing can lead to hyperinflation.

Borrowing Money (Reduce Deficits)

The act of borrowing money, which adds to the national debt, as a strategy to reduce deficits.

Treasury Bills (Gov’t Borrowing)

Short-term bonds with maturity dates of 26 weeks or less, issued by the government.

Treasury Notes (Gov’t Borrowing)

Bonds with terms of 2-10 years, issued by the government.

Treasury Bonds (Gov’t Borrowing)

Bonds that mature 30 years after the issue, issued by the government.