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Tuesday, December 8, 2009

Why does a trillion dollar deficit even matter?

When trying to comprehend a trillion-dollar deficit, you might calculate how much money that represents per person in the U.S. One trillion dollars divided by 300 million Americans comes out to $3,333. Then you search for a useful comparison. A convenient — though perhaps unsettling — comparison is to the amount of credit-card debt carried by the average person in this country. That figure is $3,245. So a good way of thinking about government debt financing is that it's similar to what the average person is doing.


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