In the latest development that should surprise no one, the U.S. government’s budget deficit through February soared to a record high.
In the first five months of the budget year, the federal deficit surged to an all-time high of $1.05 trillion as spending outpaced tax revenues. This is 68 percent larger than the deficit that was recorded during the same time last year.
Put simply, former President Donald Trump abandoned fiscal conservatism and his successor, President Joe Biden, is accelerating the deficit-financed spending.
Early estimates suggest that this year’s budget deficit will widen to $3.4 trillion. Moreover, Mayra MacGuineas, president of the Committee for a Responsible Federal Budget, predicts that if all the provisions in the stimulus and relief plans get approved, more than $4 trillion could be added to the national debt over the next decade.
The United States could be in store for a bearish future. Thanks, Republicans and Democrats.
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