Part of How Money Works – FAQ

This shows that basically dollar for dollar, government deficits EQUAL the amount of money the private sector (that’s you and us) end up with. If you make the government deficits smaller, guess who’s pocket it comes out of? OURS!

This applies to Government Debt as well. Government debt equals private sector (that’s you and our’s) savings!

From Stephanie Kelton Tweet:

How many times am I going to be forced to Tweet this graph tonight?
Bottom line: Government's deficit is *our* surplus pic.twitter.com/Fo1PGJI2

— Stephanie Kelton (@StephanieKelton) September 6, 2012

and..

Blue – Red = Green
Government deficits now barely large enough to keep private sector in surplus pic.twitter.com/HvbjfjLl79

— Stephanie Kelton (@StephanieKelton) January 25, 2017