It's in our collective interest that the government run surpluses today, rather than opt for big tax cuts or big new spending programs. These surpluses currently are our principal source of new investment capital, for business modernization and growth. To raise money to invest for the future, businesses have to draw on national savings. But on average, individual Americans aren't saving a dime. From the federal budget surplus.
Few people understand that government surpluses create savings, too.
It borrows by selling us Treasury bills and bonds. When we buy them, money shifts from the private sector to the government sector, to finance public purchasing and programs. Lately, the government has been collecting more in taxes than it needs to cover spending. The surplus reduces the need for debt. Some of those Treasury bills and bonds are being retired or redeemed.