2012 was the last year the us had no debt.
when was the last year the us had no debt?
2012
na
na
therefore, if formula_7 refers to an arbitrary year, formula_8 is government spending and formula_9 is tax revenue for the respective year, then





















































if formula_11 is last year's debt (the debt accumulated up to and including last year), and formula_12 is the interest rate attached to the debt, then the total deficit for year "t" is





















































where the first term on the right side is interest payments on the outstanding debt.





















































finally, this year's debt can be calculated from last year's debt and this year's total deficit, using the government budget constraint:
government budget balance