In recent months, we have heard quite a bit about the importance of reducing the U.S. government’s budget deficit and about the necessity of raising the debt ceiling. These two ideas are related because a budgetary deficit means that government spending is more than revenues, and the government must borrow the difference. As long as the federal government runs a deficit, its indebtedness continues to grow. Because the federal government has set a ceiling on the amount of debt it allows itself to have, it is occasionally forced to raise the ceiling to accommodate its accumulating debt. Such an occasion gives us a time to pause and consider the directions of government spending, revenues and the rate at which the U.S. government debt is accumulating.
Read the entire report: Download Nevada Economy June 2011