Marc De, the Defecit is a yearly figure of when spending is over the amount of revenue taken in by the Gov't. To offset the defecit, the Gov't issues bonds and other ways borrows the money to offset this figure. The amount borrowed ( bonds) and interest goes to the total debt.
The money is owed to investors, bond holders, etc... Many economist have theorized that defecit spending is not that harmful, and can be helpful on the shortterm.
The problem is the politicans all play games with these numbers, they baseline them, they shift debt from short term to long term ( which effects interest rates), and generally cause problems through creative accounting.
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