The Committee for a Responsible Federal Budget notes the Deficit Nearly $2 Trillion Over Past Year
The rolling deficit has been growing since November of last year, driven by rising nominal spending and declining revenue. April tax collections were particularly weak, resulting in a one-month surplus of only $173 billion this year (or $99 billion adjusted for the effects of timing shifts), compared to $308 billion ($373 billion adjusted for timing shifts) in April of 2022. When comparing both surpluses for timing shifts, this year’s April surplus is just one-quarter of the April 2022 surplus.
As a share of the economy, deficits have totaled roughly 7.5 percent of Gross Domestic Product (GDP) over the past year – twice the rolling deficit from June of 2022 and more than 50 percent higher than just before the pandemic.
High and rising deficits put more pressure on inflation, make the Federal Reserve’s inflation-fighting efforts more challenging and costly, slow economic growth, make it harder to respond to new emergencies, create geopolitical risks, and put the national debt on an unsustainable long-term path. Policymakers should enact deficit reduction to begin to stabilize the nation’s finances.
Deficit 7.5 percent of Gross Domestic Product (GDP)
Data for the above charts is from the nonpartisan Congressional Budget Office.
Battles Rage Over Biden’s Clean Energy Projects as the Size and Cost Jump
Hey guess what. The cost of Biden’s ridiculously named Inflation Reduction Act is soaring.
That means the the CRFB is already behind in its estimate.
For discussion, please see Battles Rage Over Biden’s Clean Energy Projects as the Size and Cost Jump
Meanwhile, Biden insists that reducing the deficit is a nonstarter in budget ceiling talks.
Meanwhile, the debt ceiling clock is ticking away. And the onus is now on Democrats to so something.
Hello President Biden, the Ball Is In Your Court
This post originated at MishTalk.Com
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Mish
1) if all the central banks create fiat at the same rate (and happily so), there is no devaluation with respect to foreign exchange
Ross Perot. He and Pat Buchanan were right.