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Week 03 Discussion – U.S. Budget DeficitVisit the website of the Congressional Budget Office (http:// and find the U.S. Federal deficit (surplus) and total debt. As late as 1992, the United States was running budget deficits of nearly $300 billion. During the remainder of the 1990’s, deficits declined and became surpluses. As the new century began, these surpluses again turned into deficits. Explain the decline in deficits and subsequent surpluses in the late 1990’s. Explain the return to deficit spending since the turn of the century. Consider the causes of the deficits and surpluses and provide your own insight as to whether these surpluses or deficits have a “positive” or “negative” effect on our economy.


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