What's the Other Side of the Sea Saw?

When it comes to the economy, one thing to always ask is, who's on the other side of the sea saw? We talked about this in episode three when we were looking at investing in stocks. When a government spends more than it collects and taxes, it runs what's called a budget deficit. And so there's new money going into the the system. But if the government turns around, federal govenment, and taxes a dollar, then that money is destroyed.