Despite Trump’s truly fantasy-world claim that he could pay not only end the budget deficit but erase the entire federal debt in only 8 years, the federal budget deficit just hit a staggering $1 trillion in only the first 11 months of the 2019 fiscal year. Even the Murdoch-owned Wall Street Journal notes how absurd this is:
The U.S. budget gap widened to more than $1 trillion in the first 11 months of the fiscal year, the Treasury Department said Thursday, the first time year-to-date deficits have topped that amount in seven years…
The last time the U.S. recorded a budget gap of that magnitude in the first 11 months of the fiscal year was in August 2012, when the deficit totaled $1.16 trillion, a period when the U.S. was still climbing out of a deep recession. Deficits began to decline soon after amid concerns about rising red ink, after Republicans and Democrats agreed to cut spending and let certain tax cuts expire.No such agreement is on the horizon now, and forecasters project trillion-dollar annual deficits for decades to come.
A strong economy typically leads to narrower deficits, as rising household income and corporate profits help boost tax collections, while spending on safety-net programs such as unemployment insurance tends to decline.
The U.S. economy has been growing for 10 years as of July, the longest economic expansion on record. Yet annual U.S. deficits are on track to exceed $1 trillion starting this year, due in part to the 2017 tax law, which constrained federal revenue collection last year, and a 2018 budget deal that busted spending caps enacted in 2011.
Gee, who could possibly have seen that coming? I mean, other than anyone with even a third grade education and the ability to do simple addition and subtraction. What happens when you reduce the amount of money coming in and increase the amount of money being paid out? You run a deficit. That may be the biggest DUH ever. There are single-celled organisms that can do that math. And it’s only going to get worse as Trump’s trade war damages our economy, reduces economic output and thus decreases revenues even further. And remember, the Republicans had full control of Congress for the first two years of Trump’s White House occupancy. Republicans — the party of fake fiscal responsibility since before I was born.