Unformatted text preview: National saving equals private saving plus public saving.*** Private saving is what’s left over out of gdp that has not been consumed by households and that the govt. has not taxed. T = taxes. If T –G > 0 – this is a budget surplus. The govt. is actually saving. If T + G < 0 – this is a budget deficit. The govt. is not saving. o This formula can be used to find out what public, private saving are. • Deficit, Debt. o Deficit: Yearly. o Debt: Total. o If you sum up all the surpluses and all the deficits and come out negative, you have a debt. o Debt: 12 trillion. o National debt: You need to talk about the debt held by the public. The total national debt is made up by the total debt held by the govt. + intra-governmental debt. • Intra-governmental—Money that the govt. lends itself. • 2007: The public debt to GDP ratio was 37%. • October 2008: 41%. • March 3, 2009: 46.7%....
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- Spring '08
- Deficit, budget deficit, United States public debt