“The government budget deficit is just accounting information. It tells us how much the non-government sector wants to net save in assets denominated in the domestic currency.
government deficit = non-government surplus
The deficit is the mirror image of the non-government surplus in this basic macro accounting identity, where “non-government” includes both the domestic private sector and foreign households, firms, and governments. Deficits do not reduce savings, as deficit hawks argue, deficits create savings.” — Mathew Forstater
