Skip to comments.US Runs 4th Straight $1 Trillion-Plus Budget Gap
Posted on 10/14/2012 12:12:45 PM PDT by Kaslin
If stimulus worked, then why isn't it? The US has $1 trillion deficits for four years in a row. If that's not stimulus, what is? Since it isn't working, the next question is how are we going to pay for it?
While pondering those questions, please note US runs a 4th straight $1 trillion-plus budget gap.
The United States has now spent $1 trillion more than it's taken in for four straight years.
The Treasury Department confirmed Friday what was widely expected: The deficit for the just-ended 2012 budget year the gap between the government's tax revenue and its spending totaled $1.1 trillion. Put simply, that's how much the government had to borrow.
It wasn't quite as ugly as last year.
Tax revenue rose 6.4 percent from 2011 to $2.45 trillion. And spending fell 1.7 percent to $3.5 trillion. As a result, the deficit shrank 16 percent, or $207 billion.
When Obama took office in January 2009, the Congressional Budget Office forecast that the deficit that year would total $1.2 trillion. It ended up at a record $1.41 trillion.
Debt piles up, year after year. It's reached $11.3 trillion $16.2 trillion if you include money the government has borrowed from itself, mostly revenue from Social Security.
Unless something changes, the Congressional Budget Office warns, the federal debt would reach a level that is "unsustainable from both a budgetary and an economic perspective."
Over time, big government debts can damage the economy. The economists Kenneth Rogoff of Harvard University and Carmen Reinhart of the Peterson Institute for International Economics have found that growth tends to slow sharply once national government debt reaches 90 percent of GDP. Welcome to Slow Growth
Welcome to slow growth for as far as the eye can see. Unfavorable demographics coupled with a mountain of debt seals the fate.
Ironically, Keynesian clowns are begging for stimulus, as if we don't have it already. But no! $1 trillion in deficit spending is not enough for them. They want to spend still more as if they can overcome demographics, debt deflation, interest on the national debt, and the simple fact that the government can never spend money wisely.
Want proof? The $16 trillion in debt speaks for itself. What do we have to show for that debt other than an enormously well off 1% vs. everyone else?
FY 1992-1993 Bush 1 and Dem Congress. FY 1994-95 Clinton and a Dem Congress. FY 1996-2001 Clinton and a GOP Congress. FY 2002-2003 Bush 2 and GOP House/Dem Senate. FY 2004-2007 Bush and a GOP Congress. FY 2008-2011 Obama and Dem Congress. FY 2012+ Obama/GOP House/Dem Senate.
Hope Romney hits Obama with this in the debate.And the trilion $ deficits , 4 years straight , every year it's been in office.
Budget....We don’t need no Stinking Budget!
Your chart seems off. FY 2012 is projected to be around 650 billion, and 2013 at even less than that. The only way we can achieve those numbers is through massive defense cuts.
In an unrelated matter, I understand the 1.4 Trillion deficit the year Bush left office (bailout 700 billion + stimulus 800 billion); however, I don’t understand why it would be trillion+ for a couple of years afterwards....Some of it might be lost tax revenues, increased debt payment, few workers paying less in tax....however, this does not compute. Please explain if someone has a logical answer. Thanks.
At the time this chart was put together those were projection. Like all Govt projections, it is long on wishful thinking.
Problem is Romney has no idea how to fix it either. Don’t count on him to fix it. He may try to lower the amount borrowed or printed but I have no hope of him balancing the budget.
That trillion in stimulus spending has continued year after year. One of the bonuses of not having a budget.
The way I figure it, economic growth averages about 2.2% under Obama. The deficit represents about 6.5% of the economy. The governments borrows an amount equal to 6.5% of the economy and gets a growth rate of 2.2% And you want the people in charge of this to handle your social security/retirement investments?
Uncommon Knowledge: George Gilder on Wealth and Poverty, and Why Socialism Always Fails
My obama? Go read my posting history. I’ll be here waiting for your retraction. People speak bad of mitt and people like you jump on them thinking they support Obama. Mitt is not without faults.
now go away. You bother me.