Part of the How Money Works – FAQ series

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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:

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