Author Topic: U.S. Deficit Hits Seven-Year High  (Read 437 times)

Offline FreeLancer

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U.S. Deficit Hits Seven-Year High
« on: October 25, 2019, 03:36:31 PM »
WSJ:  Federal spending climbed 8%, while revenue increased only 4%, in fiscal year ending in September

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Government deficits have now increased for four years in a row, the longest stretch of U.S. deficit growth since the early 1980s, a period marked by two recessions and a jobless rate near 11%. The budget gap widened 26% in the fiscal year that ended Sept. 30, to $984 billion from $779 billion deficit the previous year, the Treasury said, as rising government outlays continued to outpace tax collection.

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Deficits usually shrink during economic expansions as rising household income and corporate profits boost government tax revenues, while spending for safety-net programs, such as unemployment insurance or food stamps, declines.

As a share of economic output, deficits totaled 4.6% in fiscal 2019, up from 3.8% in 2018, the Treasury said. Revenues as a share of gross domestic product fell last year, to 16.3% from 16.4% in the previous fiscal year, while federal outlays surged, to 20.9% of GDP from 20.2% the previous year.

“This administration came into office talking about reducing deficits, and the results have been the exact opposite,” said Bill Hoagland, senior vice president at the Bipartisan Policy Center and a former Republican congressional budget aide.

Offline Mr. Bill

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Re: U.S. Deficit Hits Seven-Year High
« Reply #1 on: October 25, 2019, 05:12:34 PM »
Related topic from a few months ago:

One reason why the stock market is up: federal deficits

This is not an economic boom.  It's the running up of a credit card debt, and it's not sustainable.

Offline Stwood

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Re: U.S. Deficit Hits Seven-Year High
« Reply #2 on: October 26, 2019, 08:04:53 AM »
Related topic from a few months ago:

One reason why the stock market is up: federal deficits

This is not an economic boom.  It's the running up of a credit card debt, and it's not sustainable.

I fear another similar 2008 is upon us.

Offline NoStepOnSnek

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