Federal deficit unexpectedly set to double this year

[Ignobel]

The federal deficit is expected to nearly double this year, from about $1 trillion last year to $2 trillion for the fiscal year ending Sept. 30

Why it matters: There's no precedent for deficits this large, as a share of the economy — outside war, deep recession or pandemic.

• The WashPost's Jeff Stein reported Sunday on the stunning projected figure from the Committee for a Responsible Federal Budget.

Between the lines: Such huge spending imbalances contribute to high interest rates for consumers — including mortgages — in the short run.

• In the long run, it means interest costs will likely squeeze all other federal priorities.

What's happening: Bigger interest payments + lower tax receipts, despite strong economic growth.

• "A strong economy usually reduces the deficit. Not this time," Stein writes.

Reality check: The annual deficit was even higher — $2.8 trillion — in 2021, amid record COVID spending, according to the Congressional Budget Office.

https://www.axios.com/2023/09/04/fe...tter&utm_campaign=editorial&utm_medium=social

 

[RandyRebecca]

All that money to Ukraine, no doubt. A complete waste of federal taxes.

 

[Ignobel]

All that money to Ukraine, no doubt. A complete waste of federal taxes.

doesnt add up to

The federal deficit is expected to nearly double this year, from about $1 trillion last year to $2 trillion for the fiscal year ending Sept. 30

 

[Fuzzy1975]

People who don't understand what a deficit is. Too fucking funny.

 

[RandyRebecca]

People who don't understand what a deficit is. Too fucking funny.

There's always money for the super rich and the military industrial complex, no matter what. They never cease to get richer at everybody else's expense. They even get their hired politicians to put taxpayers' money to support corporate profits, such as fossil fuels.

It's in the interests of the establishment to make economics seem like some sort of "elite" science that ordinary people just can't understand. It's all nonsense. The way that the establishment runs the economy is the definition of insanity.

 

[Fuzzy1975]

There's always money for the super rich and the military industrial complex, no matter what. They never cease to get richer at everybody else's expense. They even get their hired politicians to put taxpayers' money to support corporate profits, such as fossil fuels.

It's in the interests of the establishment to make economics seem like some sort of "elite" science that ordinary people just can't understand. It's all nonsense. The way that the establishment runs the economy is the definition of insanity.

You do understand that a deficit doesn't mean debt, right? For example you pass a budget, and then due to an increase in fuel cost, you have to pay more for the fuel than you originally estimated. That is a deficit.

I suspect you were right in your first assumption, the US have given more to Ukraine than was budgeted.

 

[Sean Renaud]

Hawaii was on fire, Florida got flooded and might get hit again next week. There is still Ukraine.

 

[Sean Renaud]

You do understand that a deficit doesn't mean debt, right? For example you pass a budget, and then due to an increase in fuel cost, you have to pay more for the fuel than you originally estimated. That is a deficit.

I suspect you were right in your first assumption, the US have given more to Ukraine than was budgeted.

Not enough to matter.

 

[RandyRebecca]

You do understand that a deficit doesn't mean debt, right?

Yes, I understand. Debt is the bigger picture and what really matters. To me, the best economics means avoiding debt altogether, and staying in the black at all times. The right-wingers who run the US federal government think that going trillions of dollars into debt is the way that things should be. It's madness.

 

[Sean Renaud]

I think when you get way up there you realize the debt is less important ultimately than the deficit and if we want to get down you gotta raise taxes specifically on the uber rich. There are other reasons to do that mind you. Between 2008 and 2020 I've become convinced that a world where a handful of people own so much of the economy that when three CEOs (Ford, GM and Chrysler) went before Congress and essentially said you must bail us out or it will trigger a global depression that maybe they have too much power. We know our media basically all owned by like six companies. When its just six companies just like much of our food production you don't need to collude. The owners of Post, General Mills and whatever the third one is don't need to sit in a smoke filled room and discuss price fixing. They just don't lower prices to compete.
I could go on and on but I really don't see a differnce between a King and someone who owns the government.

Heck its arguably worse. With a king I know, hypothetically exactly who needs to be on the chopping block if it comes to that. Here sure Mitch and Biden are good targets but the guys who line their pockets will just install the next guy.