why do countries run deficits 
simply put countries run deficits because they spend more than they earn and sometimes that spending is necessary countries earn income revenue through taxes they need to spend this money in many ways public infrastructure medicare and social security benefits defense salaries for government employees and so on sometimes there just isn t enough money in a year to go around so a country resorts to borrowing deficits however also allow countries to spread taxes over time by allocating taxes over generations and can lead to economic growth if managed correctly 