Today, our economy will go through several deficits and surpluses in each ficial year. Then at the end of the ficial year we can determine as a country weather we had a deficit or a surplus. The interesting fact is that the government is continually paying off and borrowing money all the time, through buying and selling bonds. The government is always paying off its deficit through rolling over our tax money. The only problem is too high of a deficit can effect inflation and the GDP level.
If the government could reduce its spending with the economy still booming, then we would be in favor of surpluses. Some of the ways the government could reduce it spending is by health care costs, Social Security, and even Medicare costs. However, the only problem is we as a nation are getting ready to have one of the largest retirements periods coming up; the baby boomers.
Inflation has been at a very steady rate for a long period of time, there is really only one way for it to go; up. With inflation up and the government spending more money on health care costs for the future baby boomers, our deficit will go even higher than what I believe most people are expecting it to.