good grief

Yr 1 - Country spends ?50 more than it receives. ?50 debt.

Yr 2: Spending cuts mean country only spends ?45 more than it receives. ?95 debt.

Yr 3: Further spending cuts mean it only spends ?40 more than it receives. ?135 debt.

Yr 4: Even more spending cuts mean it now only spends ?35 more than it receives. ?170 debt.

Add lots of zeros and perhaps you'll understand why national debt can go up dramatically even in the face of spending cuts

Debt will not go down until a surplus is achieved.

Posted By: CWC, Nov 25, 16:33:54