U.S. deficit to eclipse $1 trillion in 2020, CBO says, as fiscal imbalance continues to widen

[mahatmakanejeeves]

Source: Washington Post

Business
U.S. deficit to eclipse $1 trillion in 2020, CBO says, as fiscal imbalance continues to widen

By Jeff Stein
Jan. 28, 2020 at 2:34 p.m. EST

The U.S. government’s budget deficit is projected to reach $1.02 trillion in 2020, according to a report released Tuesday by the nonpartisan Congressional Budget Office, as the federal government continues to spend much more than it collects in tax revenue.

A combination of the 2017 tax cuts and a surge in new spending has pushed the deficit wider. This year would mark the first time since 2012 that the deficit breached $1 trillion, a threshold that has alarmed some budget experts because deficits typically contract — not expand — during periods of sustained economic growth.

Overall, CBO projected that the federal government will spend $4.6 trillion in the fiscal year that ends Sept. 30 and bring in $3.6 trillion in tax revenue.

And some of the costliest government programs are projected to experience sizable expansions in the next decade. Spending for Medicare, which provides health care for older Americans, will rise from $835 billion in 2020 to $1.7 trillion by 2030, while annual federal spending on Social Security will grow from roughly $1.1 trillion to $1.9 trillion over that span.
....

Jeff Stein is a policy reporter for The Washington Post. He was a crime reporter for the Syracuse Post-Standard and, in 2014, founded the local news nonprofit the Ithaca Voice in Upstate New York. He was also a reporter for Vox. Follow https://twitter.com/jstein_wapo

Read more: https://www.washingtonpost.com/business/2020/01/28/us-deficit-eclipse-1-trillion-2020-cbo-says-fiscal-imbalance-continues-widen/

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Hat tip, Joe.My.God:

2020 Federal Budget Deficit Forecast To Top $1 Trillion
January 28, 2020

https://www.joemygod.com/2020/01/2020-federal-budget-deficit-forecast-to-top-1-trillion/

[Bayard]

1. More of tRump and the rethuglicans hideous legacy

[raccoon]

2. Thanks to Dotard and his minions and their tax cuts. NT

[SWBTATTReg]

3. And because there are so many dollars floating around as debt issues (how government raises ...

funds to finance the debt), more interest will have to be paid on this debt in order to attract borrowers to hold onto this government debt (treasuries, etc.). If there is a flood of such debt out there, there will be fewer people to soak up all of this additional debt. Especially since China and others (Petro Dollar countries) are moving/migrating to other investments instead of the dollar. This will result in less demand for the dollar, dropping the value of the dollar as time goes on, and thus, resulting in less buying power for the average American consumer.

Once again, we're paying the price for bad monetary policy. The American consumer. Most of us really have no feasible way to invest in other than non-Dollar dominated assets, unless perhaps in gold or silver ('hard' assets). A lot of people are staying away from the markets being that there is a strong feeling that the markets are currently overpriced. Thus, where does one go to invest/hold assets in a 'safe' zone?

[cstanleytech]

4. I think the Republicans goal is to trigger a depression and

then buy up people's homes and assets cheap as people are foreclosed on and declare bankruptcy.

[bluestarone]

6. YEP!

Just for the Democratic president to fix AGAIN!!

[Wuddles440]

5. Nothing to see here folks...

just move along for now. Debt and deficits mean nothing while the CONS are in charge! Well, that is until next year when they'll become extremely "alarmed" about them, declare a "fiscal emergency", and convince the public that the only way to "save the nation" is to severely cut discretionary spending, especially Social Security and Medicare.

[keithbvadu2]

7. An awful lot of silence from the Tea Party.

An awful lot of silence from the Tea Party.

[ffr]

8. DEFERRED TAXES WITH INTEREST!!!

Good job America! You gave us deferred taxes with interest for our lifetime. Hope it will be worth it the next time you fall for the rePutican con job talking point of lower taxes. Lower taxes, is D.C. double-speak for DEFERRED TAXES WITH INTEREST!!!

Open your wallet. How would you like to pay that off? A dollar today or ten tomorrow?

[roamer65]

9. The Federal Reserve is monetizing most of the new issuance.

So, in the end the taxes will be paid through the other form of taxation....inflation.