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According to the newest estimate from the Congressional Budget Office (CBO), the U.S. budget deficit hit $984 billion in fiscal year 2019. That amounts to a whopping 4.7% of U.S. gross domestic product — the highest level since 2012.
And it’s not a shortage of money that’s the problem. While the CBO reports that tax revenues were 4% higher in FY 2019 compared to FY 2018, federal outlays increased by 7%.
The fact that this spending binge and deficit pileup is happening during the longest economic expansion in modern U.S. history makes fiscal hawks like Edelman particularly uneasy.
“Imagine what happens if we in fact run into a recession,” he warned. “That means we’re going to face austerity. We’re going to see a combination of tax increases and government cuts in spending.”
The fact that a significant number of Americans have little in savings or liquid financial assets like stocks to fall back on gives Edelman even further cause for concern.
“It could get ugly for a lot of parts of American society,” according to Edelman. “The real question is: to what degree will this matter in the upcoming presidential campaign?
originally posted by: ManFromEurope
Economists typically recommend that the federal government increase spending, and thus add more debt, during times of economic struggles and then pay down that debt when the economy recovers.
So while economic theory would support Obama's spending to help support the economy, Trump's recent debt binge has less support among economists.
originally posted by: xuenchen
The deficits and National Debt is on Congress 100%
All a President can do is sign it or not sign it 😃
Trump has however, criticized some of the spending legislation 🎯