What is the annual federal deficit?

The annual federal deficit is how much the government has gone over budget in a fiscal year. This means the debt the country owes continues to grow.

In prior years, debt was only accrued when the nation was at war. During the Great Depression, the United States began borrowing money in order to save the economy. America had no debt or budget until 1790. Alexander Hamilton set up a budget in order to keep the nation on the right track. He forgave all debt that had occurred due to the Revolutionary War. The debt was under control until the Reagan administration. It was raised because of the Cold War and has risen since because of the war on terror.