"This can be a turning point for us. For twelve years our government - Congress and the White House - ducked the deficit and pretended we could get something for nothing. In my first two years as President we turned this around and cut the deficit by one third. Now let's eliminate it." - President Bill Clinton, June 13, 1995
1) What is the deficit?
As described, when the government spends more money than it receives from taxes and other sources of revenue within a given year, a deficit is created. In the twelve years before President Clinton took office, the deficit exploded, quadrupling in size.
2) Why is the deficit a problem, and how does the deficit affect young people?
The United States, like anyone who borrows money, has to repay its lenders and also pay interest on its debt (the accumulated deficits). The money the government spends to pay back the debt is money that would otherwise go toward investments in the future - such as education, job training, and crime prevention. Just paying the interest on the national debt costs the government an enormous amount of money every year.
3) What is President Clinton doing to reduce the deficit?
Since taking office, President Clinton has made the tough decisions necessary to reduce the deficit and strengthen the economy. In 1993, he signed the largest and most successful deficit reduction proposal in American history, leading to more than $1 trillion in deficit reduction over 7 years - about $15,000 less debt per every family of four.
Yet the President realizes that more must be done. Too many Americans have not yet felt the positive impact of the economic recovery. President Clinton has pledged to continue his efforts to reduce the deficit and to achieve a balanced budget in order to promote a secure future for all Americans.
4) Why can't the government just find a way to quickly get rid of the deficit?
At the moment, the deficit is so large that it cannot be eliminated all at once. Instead, President Clinton is working with Congress to eliminate the deficit over a period of several years. That way, the government can continue to support important public programs and, step-by-step, move toward a balanced budget.