Mary: This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program looks at deficits, debt, and worries. Mike, it seems as if concerns about the federal budget deficit and debt are largely off the radar screen. However, many people say we should still worry about them. Give us a short summary of their impacts.
Mike: Summary Answer
- First – definition – difference between deficit and debt
- Second – measurement – not $, but percent of national income (GDP)
- Third – we will get a bill – no – constantly rolls over
- Fourth – burden for future generations – depends on if they benefit from the spending funded by the borrowing – roads, military, health care?
- Fourth – how judge if getting worse – track interest payments on debt as % of GDP – has not been rising thanks to super low interest rates – but concerns if rates rise
- I’m MW
Mary: And I’m Mary Walden for N C State Extension