10-22-2006, 03:58 PM
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So Fucking Gay
Join Date: Nov 2004
Posts: 19,714
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Quote:
Originally Posted by WarChild
Doesn't the nature of inflation mean that every deficit going forward will always be at record levels?
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No.
National deficit = (yearly revenue - yearly spending)
Don't spend more than you bring in any given year and you have 0 deficit.
National debt = accumulated deficit from year to year to year
The national DEBT will always be increasing to record levels due to inflation and interest assuming we don't do anything to help reduce it. But that's assuming it only increased proportionately with inflation. That's certainly not been the case with this administration though.  |
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