00:01
So this is a tough question, right? my answer here is that still possible, but the answer here is not important.
00:13
The explain is what's important.
00:15
So first of all, let's remember that deficit, right? we are thinking about the budget deficit.
00:20
The deficit is equal to the difference between taxes and spending.
00:30
So at a very basic look, you might say that, look, if spending is the same and taxes are the same, the budget deficit has to be the same as well.
00:40
And that looks very similar, but it reflects the fact that we are not, you know, you have to be very careful about the language here.
00:47
And here are some ways that, you know, this could be changed, right? for example, you could have the same tax rates or tax policy, which is what we usually talk about when we're talking about taxes.
01:03
When we say taxes, we usually are thinking of tax rates, but the economy changes, right? and if the economy changes, you get the same tax rates will produce different tax revenue.
01:27
So here you've got a dis, you know, it's all about the idea of language, right? all about the idea of language.
01:34
You have the same tax rates.
01:36
You don't change the taxes at all.
01:38
You keep the tax code identical, but the economy changes.
01:41
And that means your tax revenue is changing.
01:43
If your tax revenue changes, your budget deficit or surplus will change as well, even though you have kept tax is the same, right? the similarly thing can happen on the spending side, right? you can have the same spending policy, but people change.
02:06
They act differently.
02:07
Now, this could be because of the economy or something else, right? so, for example, they might have more kids.
02:16
And more kids means more government spending.
02:21
So you've kept the exact same social programs in place.
02:25
You've kept the exact same social programs in place.
02:28
You haven't made any policy changes...