(The Center Square) – The federal government spent $1.8 trillion more than it collected in tax revenue in fiscal year 2024, according to figures released Friday by U.S. Treasury Department.
Every year the Treasury issues bonds in the amount of the trade deficit to balance out the goods and services exported vs imported. Those bonds are debt that the federal government owes. The money received for the bonds is accounted for but is essentially deleted from the economy… The federal government creates money when it spends, it does not need the money it collects from bonds. We could stop creating this debt every year but they believe that balancing out imported vs exported is important for some reason.
Every year the Treasury issues bonds in the amount of the trade deficit to balance out the goods and services exported vs imported. Those bonds are debt that the federal government owes. The money received for the bonds is accounted for but is essentially deleted from the economy… The federal government creates money when it spends, it does not need the money it collects from bonds. We could stop creating this debt every year but they believe that balancing out imported vs exported is important for some reason.