Trending Now :

What Does the Hot Inflation Report Mean for the Housing Market How Do You Build Wealth: Invest in Yourself Times Up for Programmed Money Biggest Financial Crimes: Countrywide Quantitative Tightening, Inflation, & More The Stock Market Is On Sale Investors Need to Netflix and Chill Credit Card Fixed-Interest Loans: Explained Are You Money Smart? Build Your Credit for Free Filing Your Taxes in 2022 Credit Cards that Offer 2% Cashback on All Purchases Navient Ordered to Cancel Student Loans U.S. Mortgage Interest Rates Soaring Two Big Banks Cut Overdraft Fees 2022 IPO DRAFT CLASS: Ranking the Top 10 Prospects Re-Drafting the 2021 IPO Draft All You Need to Know about Buy Now Pay Later companies Credit Card Sign-Up Bonus or SUB The Best Credit Card for the Middle-Class Make An All-cash Offer with No Cash Capitalism Always Ignores Politics All You Need to Know about the Financial crisis of 2007-2008 American Families Face Serious Rent Burden Savings Is An Expense You Can’t Build Generational Wealth If You Are Broke IT’S OFFICIAL: Robinhood is a Meme Stock All You Need to Know About Biden Mortgage Modifications & Payment Reductions Apple Card 2nd Year Anniversary: Should You Get It Now Wells Fargo to Pull Customers Personal Lines of Credit The Rise of Individual Investors The US Housing Market Is Booming. Is a Crash Ahead? Financial Literacy: How to Be Smart with Your Money Non-Fungible Token (NFT):EXPLAINED SKYROCKETED CEO PAY & LONG LINES AT FOOD BANKS Amazon Workers Want to Unionize Another Major City Piloted Universal Basic Income The New Bubble: SPACs SUBMIT YOUR PPP ROUND 2 APPLICATION BEFORE MARCH 31ST Robinhood-GameStop Hearing & Payment for Order Flow Guess Who’s Coming to Main Street Democratic Senators Say No to $15 Minimum Wage BEZOS OUT! President Biden Most Impressive Act Went Unnoticed: CFPB Biden $1.9 Trillion Stimulus Package 2021 IPO DRAFT CLASS: Ranking the Top 10 Prospects $25 Billion Emergency Rental Assistance NO, TESLA IS NOT WORTH MORE THAN TOYOTA, VOLKSWAGEN, HYUNDAI, GM, AND FORD PUT TOGETHER AMAZON TO HAND OUT ITS WORKERS $300 HOLIDAY BONUS Where Does the American Middle-class stand on Student Debt Relief? Joe Biden’s Economic Plan Explained 4 TYPES OF BAD CREDIT REPORTS AND HOW TO FIX THEM What Is the Proper Approach to Not Buy Too Much House? FISCAL STIMULUS PLANS STILL IN ACTION How to Pick Investments for Your 401(k) 10 Simple Ways to Manage Your Money Better All You Need to Know about Reverse Mortgage All You Need to Know about Wholesale Real Estate Credit card Teaser Rates AVERAGE CREDIT CARD INTEREST RATE SURGES TO 20.5 Percent Trump Signs 4 Executive Orders for Coronavirus Economic Relief The Worst American Economy in History WHY CREDIT CARDS MINIMUM PAYMENTS ARE SO LOW? 10 BIGGEST COMPANIES IN AMERICA AND WHO OWNS THEM White House Wants to End the Extra $600-A-Week Unemployment  10 Countries That Penalize Savers FEWER CREDIT CARD BALANCE-TRANSFER OFFERS ARE IN YOUR MAILBOX Private Payrolls and the Unemployment Rate SHOULD YOU BUY INTO THE HOUSING MARKET RESILIENCY? WILL WE GET A SECOND STIMULUS CHECK The Child Tax Credit and Earned Income Tax Credit THE RETURN OF BUSINESS CYCLES Should You Request a Participant Loan or an Early 401(k) Withdrawal? Homebuyers Should Not Worry about Strict Mortgage Borrowing Standards The Potential Unintended Consequences of Mortgage Forbearance All Business Owners Need to Know about the Paycheck Protection Program 10 MILLION UNEMPLOYMENT CLAIMS IN TWO WEEKS HOW WILL THE GLOBAL MIDDLE-CLASS RECOVER FROM A SECOND ECONOMIC RECESSION IN A DECADE? WILL U.S. CONSUMERS CONTINUE TO SPEND? HOW’S YOUR 401(k) PRESIDENT TRUMP SIGNS $2.2 TRILLION CORONAVIRUS STIMULUS BILL MIDDLE-CLASS NIGHTMARE: MORE THAN 3.3 AMERICAN FILED FOR UNEMPLOYMENT CLAIMS IN THE US LAST WEEK. LAWMAKERS AGREED ON $2 TRILLION CORONAVIRUS STIMULUS DEAL CORONAVIRUS STIMULUS PACKAGE FAILED AGAIN IN THE SENATE APRIL 15 (TAX DAY) DELAYED DEMOCRATS AND REPUBLICANS DIFFER ON HOW $2 TRILLION OF YOUR TAX MONEY SHOULD BE SPENT YOU CAN DELAY MORTGAGE PAYMENTS UP TO 1 YEAR, BUT SHOULD YOU? 110 Million American Consumers Could See Their Credit Scores Change The Middle-Class Needs to Support Elizabeth Warren’s Bankruptcy Plan The SECURE Act & Stretch IRA: 5 Key Retirement Changes 5 Best Blue-chip Dividend Stocks for 2020 9 Common Bankruptcy Myths 401(K) BLUNDERS TO AVOID Government Policies Built and Destroyed America’s Middle-Class & JCPenney Elijah E. Cummings, Esteemed Democrat Who Led the Impeachment Inquiry into Trump, Dies at 68 12 Candidates One-stage: Who Championed Middle-Class Policies the Most WeWork: From Roadshow to Bankruptcy Stand with the United Auto Workers Formal impeachment Inquiry into President Donald Trump America Is Still a Middle-Class Country SAUDI OIL ATTACKS: All YOU NEED TO KNOW THE FEDERAL RESERVE ABOLISHED BUSINESS CYCLES AUTO WORKERS GO ON STRIKE Saudi Attacks Send Oil Prices Spiraling REMEMBERING 9/11 What to Expect from the 116th Congress after Their August Recess Should You Accept the Pain of Trump’s Trade War? 45th G7 Summit-President Macron Leads Summit No More Upper-Class Tax Cuts Mr. President! APPLE CARD IS HERE-SHOULD YOU APPLY? THE GIG ECONOMY CREATES A PERMANENT UNDERCLASS 5 REASONS IT’S SO HARD FOR LOW-INCOME INDIVIDUALS TO MOVE UP TO THE MIDDLE CLASS ARE YOU PART OF THE MIDDLE CLASS? USE THIS CALCULATOR TO FIND OUT? WELLS FARGO IS A DANGER TO THE MIDDLE CLASS The Financialization of Everything Is Killing the Middle Class
federal budget deficit
Business

Federal Budget Deficit Bloated to Nearly $1 Trillion in 2019 

The estimated reading time for this post is 133 seconds

The federal budget deficit reaches $984.4 billion, meaning that the government spends nearly $1 trillion more than what it takes in revenues.  That increase in the deficit is the highest in 7 years.  Last time the deficit reached that amount, President Obama was dealing with the 2008 financial crisis and the worst recession since the 1930s.

The federal budget deficit surged to 35,000 percent since 1970; the deficit was $2.8 billion then.  The Trump Administration is rocking that high deficit when both the unemployment rate and the stock market are at a historic low.

According to USAFacts, Government spending has exceeded revenue in all but six years since 1980.  Most of the government surplus, revenues exceed expenses, happened under President Clinton.

When he was running for president back in 2016, Donald Trump promised to pay off the nearly $20 trillion national debt “easily.”  However, he has been added to it more than any other president, even with the healthiest economy in a century.

The ballooning deficit itself is not the problem, but as we wrote on this site before, how the government decides to spend the $5.1 trillion that is collected from the taxpayers, and other sources in 2019 are the main issues.

Where is President Trump Spending Taxpayers’ Money

President Trump’s $1.5 trillion tax cut that goes to the top 5 percent U.S. earners and spending increased for defense programs seem to be the leading cause of the ballooning deficit.

America’s mission statement is to form a perfect union.  Lately, the country has been steering away from that motto.  The way the government allocates its resources doesn’t support or promote that motto–keeping Americans healthy, fixing dilapidated roads and bridges, and educating the nation children should be the cause of the outlandish deficit.

The U.S. economy is on its decade-plus expansion, which should bring more money into the government’s coffers and reduces the budget deficit.  Government spending is already 20 percent of gross domestic product (GDP).  An economic slowdown or recession is the result of a lack of business and consumer spending.  The government has to spend a lot more to resuscitate the economy.  President Obama had to buy General Motors, American International Group (AIG), and Fannie Mae to halt the great recession into turning a depression.

The Trump administration is already spending like the economy is in a recession and the beneficiary of that ridiculous spending are the top 5 percent of U.S. earners

What Is Next

The Congressional Budget Office (CBO) projected that the deficit will be around $1 trillion in the coming years and will remain there for the next decade.  Mr. Trump will not roll back his tax cuts for the wealthy.  $1 trillion federal deficit is here to stay.

BACK TO TOP
Continue Reading
Click to comment

Leave Comment

Advertisement
American Middle Class / Sep 26, 2022

How Do You Build Wealth: Invest in Real Estate

The estimated reading time for this post is 436 seconds How Do You Build Wealth: ...

American Middle Class / Sep 14, 2022

What Does the Hot Inflation Report Mean for the Housing Market

The estimated reading time for this post is 100 seconds The benchmark 30-year fixed mortgage...

American Middle Class / Sep 11, 2022

How Do You Build Wealth: Invest in Financial Assets

The estimated reading time for this post is 350 seconds How Do You Build Wealth: ...