Despite being a black eye to the current administration, it will unlikely be discussed by the Democrats in the 2020 election race, mainly because they are just as fiscally reckless as President Donald Trump.
So, what are we talking about? The federal deficit.
It seems that the federal government was a few billion dollars shy of topping the $1 trillion mark for the budget deficit.
According to the Congressional Budget Office (CBO), the budget shortfall totaled $984 billion after many had anticipated that it would surpass $1 trillion
How is this a good news story? It isn’t. Here are some facts:
– The deficit rose 26 percent over last year’s shortfall.
– The deficit accounted for 4.7 percent of GDP, a seven-year high.
– This was the fourth straight year that the deficit increased as a percentage of the GDP.
– The debt-to-GDP ratio soared 26 percent over the last year.
What is the cause? The media are trying to pass the buck to tax cuts, but the revenues were surprisingly up. It is the immense amount of federal spending that is causing the deficit, which climbed more than eight percent to $4.45 trillion.
What’s worse, the federal government paid nearly $400 billion in debt servicing payments.
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