For fiscal year 2021, the U.S. federal deficit was approximately $2.8 trillion, nearly TRIPLE the deficit of 2019, and the national debt grew to over $29 trillion. A majority of the increases in both figures were a result of the economic disruptions caused by the coronavirus pandemic and the responding legislation that was enacted. (You can find real-time numbers for the deficit, debt, and much more at www.usdebtclock.org.)

The Congressional Budget Office (CBO) projects federal deficits as a percentage of GDP to increase through 2030. Currently, the federal debt held by the public is around 98% of GDP, with the CBO projecting that to rise to 108% by 2031, which would be a record high.

• What is the difference between the federal deficit and the national debt? How is the federal deficit related to the national debt?
• What are the economic consequences of a rising federal deficit and national debt?
• Should we be concerned about the sizes (and projected increases) of the deficit and debt? Why or why not?
• Who exactly do we owe this money to (be specific!), and does this make a difference in terms of our level of concern?
• What can the government do to reduce the deficit numbers? Be specific, explaining how the numbers would be reduced, and if the government actually should use these methods of deficit reduction.