Federal Deficit Soars 32 percent to $895B

Holy cow! It looks like Trump's tax cuts for the wealthy and corporations have had an affect. doh

According to Bob Woodward's book Trump told Gary Cohn (Trump's chief economic advisor) to 'print money' to lower the national debt. "You don't get to do it that way," Cohn said. Cohn was "astounded at Trump's lack of basic understanding." Cohn later resigned, a good move on his part.

This excerpt is from The Hill.

The federal deficit hit $895 billion in the first 11 months of fiscal 2018, an increase of $222 billion, or 32 percent, over the same period the previous year, according to the Congressional Budget Office (CBO).

The nonpartisan CBO reported that the central drivers of the increasing deficit were the Republican tax law and the bipartisan agreement to increase spending. As a result, revenue only rose 1 percent, failing to keep up with a 7 percent surge in spending, it added.

Revenue from individual and payroll taxes was up some $105 billion, or 4 percent, while corporate taxes fell $71 billion, or 30 percent.

The August statistics were somewhat inflated, however, due to a timing shift for certain payments, putting the deficit measure through August slightly out of sync with the previous year, the CBO noted. Had it not been for the timing shift, the deficit would have increased $154 billion instead of $222 billion.

Earlier analysis from CBO projected that deficits would near $1 trillion in 2019 and surpass that amount the following year.

Comments (6)

Palmfrond
I’ve heard that line “print the money “ spoken as a joke. Perhaps some people don’t have a sense of humor.

That’s as far as I got. I think I’m colorblind
If you want someone who doesn't understand economics (or much else, except how to scam people), Trump is your man.
Perhaps the US government will be his 7th bankruptcy, right before he moves to Moscow.
JimN

Too funny...but would not surprise me...laugh
raphael119
Just read where columnist wants Trump to get Nobel for economics ! Wonder how much Trump paid him?
laugh


doh
Trump gets it. The American national debt is the world's problem so long as the dollar remains the world's currency, for a long time you print dollars and give them to Africa and in exchange they hand over raw materials and perhaps Trump will seek an intensification of this arrangement where the world pays the American debt. From the position of power America is in you could make the lions share of your wealth unearned income, your people will grow fat, decadent and lazy and eventually crumble to nothing but it's possible to live for today in the meantime.

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