Your English writing platform
Discover LudwigSuggestions(1)
Exact(3)
So yes, the budget deficit has soared — but it's just offsetting a surge in the private sector surplus.
For one thing, we know that most of that surge in the private sector surplus reflects the collapse of the housing bubble, and that most of the surge in the public deficit reflected automatic stabilizers.
Here's the picture of what has happened to saving and investment in America in recent years: The blue line is government saving, roughly speaking (leaving some public investment aside) the public sector surplus or deficit; the red line is the private sector surplus, the difference between private saving and private investment.
Similar(57)
All were based on the same false premise: federal government deficits represent a burden on the private sector. 1. Public sector deficits are private sector surpluses.
This follows another huge private-sector surplus, of 7.2%, the year before.
Rising private-sector surpluses have been a driver of public-sector deficits.
The private sector moved into surplus, but this was matched by a public sector deficit of 10% of GDP.
As the initial stimulus steadily took effect, it would gradually draw in the private sector's cash surplus as the level of aggregate demand began to rise.
The private sector's financial surplus has surged; government deficits have risen in counterpart through the operation of automatic stabilizers, mainly revenue but also unemployment insurance and other safety-net programs.
In twin deficit countries, the private sector's financial surplus is not big enough to cover the government deficit fully, necessitating foreign borrowing by the sovereign with all sorts of potential ramifications.
For the world as a whole, it is a matter of arithmetic that the government can run a deficit only to the extent that the private sector runs a surplus.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com