Deficit reduction

[cyberslider]

Maybe I don't understand - I never studied economics. But, I'm thinking that reducing the deficit by 4 Trillion dollars over 12 years will do nothing to reduce DEBT?

By the same token, reducing the deficit by 5 Trillion dollars over 10 years will basically have the same net effect - nothing?

 

[steelhorse]

Yeah and I wonder what the accumulated interest is on those trillions of dollars? Is it kinda like the credit cards that has a $25 minimum payment?

 

[Ipeka]

Yeah and I wonder what the accumulated interest is on those trillions of dollars? Is it kinda like the credit cards that has a $25 minimum payment?

http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

You are correct, reducing deficit spent does not touch the debt. Deficit spending is defined as

"The amount by which a government, company, or individual's spending exceeds its income over a particular period of time."

Read more: http://www.investorwords.com/1373/deficit_spending.html#ixzz1JS2wKrKY

 

[Biggsly]

What ever money they cut, they will just slip in somewhere else. They still need voters.