Skip to comments.Budget deficit rises to $120 billion in October
Posted on 11/13/2012 3:21:59 PM PST by Oldeconomybuyer
The budget deficit rose in October, the first month of fiscal year 2013, as looming negotiations over expiring tax cuts and imminent spending reductions dominated the post-election political landscape.
The Treasury said on Tuesday the October deficit was $120 billion, larger than economist forecasts for a $114 billion gap and up from $98 billion in October of 2011.
Growth in expenditures outpaced rising receipts, deepening the deficit. Outlays grew to $304 billion from around $262 billion in the same month last year while receipts rose to $184 billion from $163 billion.
(Excerpt) Read more at reuters.com ...
How can they possibly call it a budget deficit. We don’t have a budget.
Some idiot named Joe at the link seems to think that more Chevy Volts is the answer to all our problems as it would eliminate reliance on foreign oil. He must be related to the other idiot named Joe - you know the one that was re-elected as Vice President.
Eat, drink, and be merry...
There was a time when the entire national budget, to run the US for a year, was about $100 billion, and it came up with a shortfall of maybe one or two billion. This was held to be very poor fiscal planning at the time, and there wer sharp cuts in the discretionary speding. Of course, that was also a time when the Social Security receipts were kept OUT of the accounting in the annual US budget.
Didn’t keep Congress from calling on the “surplus” in the Social Security funds from being “borrowed” to balance the budget, though.
Hey get off the internet and get back to work, I need more minutes on my Obamaphone...
The parasites don’t care. Gimmie, gimmie, gimmie, vote Rat, gimmie, gimmie, gimmie, vote Rat, repeat until the nation is destroyed.
These same parasites were scared into voting for Obama because Romney threatened to create 12 million jobs.
Happy days are here again!
The last thing a parasite wants is a job.
That’s was the R&R problem. They assumed jobs, liberty, and economic growth is what Americans want. Sadly society has created too many people who now just want free crap. If it means achievers and more debt has to pay for it, they don’t care.
Of course the deficit is growing beyond expectations: median household income is dropping, so revenues are dropping.
The iron law of U.S. Federal Taxation:
Federal Tax Receipts = 311,420.423287 * (Median Household Income)^1.463074
(with R^2 = 0.995840). A little regression analysis by Political Calculations using annual data from the 1967 to 2010 gave that model. Think about the changes in tax policy and economic conditions over that time, and 99.584% of the variation in Federal Tax Receipts can be explained by medial household income.
That's funny ...in a really sad way.
“Of course the deficit is growing beyond expectations: median household income is dropping, so revenues are dropping.”
I read recently tax receipts typically average about 19% of GDP while federal expenditures run 20-21% of GDP. Under Obama spending is approaching 25% of GDP and receipts have dropped to about 15.5% of GDP. The trillion dollar annual deficits are due to both increased spending and lower tax collections.
We know the government has been understating employment. We know that unemployed people who find jobs in this economy are accepting jobs at 2/3 the pay of the job they lost. We know that many people are making do with low paid/no benefit part time jobs because they cannot find full time employment. We also know people in their late 50’s and early 60’s who lose their jobs are retiring early. All of the above contribute to lower tax revenue.
Plus, disposable income for the average American has declined for a decade. Wage increases are not keeping up with real inflation. Just as the government is understating unemployment it is understating the inflation rate.
Opening our markets to imports from third world nations is having the predictable effect. US workers are now competing in a global marketplace with 10 cent per hour labor in Bangladesh, China and Burma. Competition is driving wages and the standard of living down in the US while raising it in the nations that trade with us. Add crushing government regulation of small business, and the crowding out of private market capital available to fund business expansion by government borrowing and you have declining economic activity and tax receipts.
The day of reckoning will be accelerated as Obama doubles down on his regulatory and redistribution policies in the second half of his administration. My only question is how he will lay the blame on the Republicans when the collapse occurs. No doubt that is on Boehner’s mind as well given his apparent willingness to compromise.