Reply With QuoteThose huge numbers are always hard to comprehend without some context. $974 billion is Britains government spending for a year, with about $150 billion spare.
U.S. budget deficit totals $974B through July
http://www.cbsnews.com/8301-505123_1...-through-july/
Read the rest of the article at the linked page.The U.S. federal budget deficit increased $70 billion in July and is on track to top $1 trillion for the fourth straight year.
The deficit for the first 10 months of the 2012 budget year, which ends Sept. 30, totaled $974 billion, the Treasury Department said Friday. That's 11.5 percent less than in the same period last year. A slightly better economy has boosted income tax receipts.
Still, President Barack Obama will almost certainly face re-election after running $1 trillion deficits each year in office. Republican candidate Mitt Romney has criticized Obama for failing to cut the deficit in half, as he pledged to do during his 2008 campaign.
Those huge numbers are always hard to comprehend without some context. $974 billion is Britains government spending for a year, with about $150 billion spare.
Even worse. The federal budget is without war costs and stimulus.Originally Posted by Corrupt
What the hell, its only money.
Part of the problem is that we don't actually have a budget. We haven't had one in several years. Each side blames the other for it, but Republicans only came into play from Jan 2011 onwards; the Democrats had full control of both houses since 2006. What this has resulted in is a bunch of temporary spending measures. If we have used up our tax revenue by July, and we're approaching a trillion dollars in borrowed money by that point, this is very bad. I'd almost prefer a budget that predicted such a deficit shortfall, rather than what basically amounts to a credit card paying off short-term purchases; at least there'd be a clear plan as to what we're spending the money on.
War costs are funded via the DOD budget. I don't know for sure about the stimulus, but if I had to guess, its costs were divided up among budgets in various government agencies. If you're looking for the true costs of those two items, there's where you'd look.
Albeit really scary ... but the above chart is not TRUE. The chart indicate estimates and not absolutes that are revised periodically and are subject to change.
You can also see a trend with Deficit in 2009 increasing but in 2010 decreasing.
According to CBO Budget's & Economic Outlook.
In January 2009
CBO projects that the deficit this year will total $1.2 trillion, or 8.3 percent of GDP. Enactment of an economic stimulus package would add to that deficit. In CBOs baseline, the deficit for 2010 falls to 4.9 percent of GDP, still high by historical standards.
in March 2009 :
Those projections assume that current laws and policies remain in place. Under that assumption, CBO now estimates that the deficit will total almost $1.7 trillion (12 percent of GDP) this year and $1.1 trillion (8 percent of GDP) next yearthe largest deficits as a share of GDP since 1945. Deficits would shrink to about 2 percent of GDP by 2012 and remain in that vicinity through 2019.
*Not 1.83 trillion mentioned in the above slide for the month of March 2009 Although ,still high but adding almost 100 Billion is rather ingenuous.*
*I am not condoning the increase in deficit, however it helps to put things in perspective as well. 2009 was an extraordinary year. The Global economy had almost collapsed. *
According to CBO the following added to the deficit. :
The major slowdown in economic activity and the policy responses to the turmoil in the housing and financial markets have significantly affected the federal budget. As a share of the economy, the deficit for this year is anticipated to be the largest recorded since World War II. Under the rules governing CBOs budget projectionsthat is, an assumption that federal laws and policies regarding spending and taxation remain unchangedthe agencys baseline reflects these key points:
- CBO projects that the deficit this year will total $1.2 trillion, or 8.3 percent of GDP. Enactment of an economic stimulus package would add to that deficit. In CBOs baseline, the deficit for 2010 falls to 4.9 percent of GDP, still high by historical standards.
- CBO expects federal revenues to decline by $166 billion, or 6.6 percent, from the amount in 2008. The combination of the recession and sharp drops in the value of assetsmost significantly in publicly traded stockis expected to lead to sizable declines in receipts, especially from individual and corporate income taxes.
- According to CBOs estimates, outlays this year will include more than $180 billion to reflect the present value of the net cost of transactions under the Troubled Asset Relief Program (TARP), which was created in the fall of 2008. (Broadly speaking, that cost is the purchase price minus the present value, adjusted for market risk, of any estimated future earnings from holding purchased assets and the proceeds from the eventual sale of them.) The TARP has the authority to enter into agreements to purchase assets totaling up to $700 billion outstanding at any one time, but the net cost over time will be much less than that amount.
- The deficit for 2009 also incorporates CBOs estimate of the cost to the federal government of the recent takeover of Fannie Mae and Freddie Mac. Because those entities were created and chartered by the government, are responsible for implementing certain government policies, and are currently under the direct control of the federal government, CBO has concluded that their operations should be reflected in the federal budget. Recognizing that cost in 2009 adds about $240 billion (in discounted present-value terms) to the deficit this year, but that is not a measure of the amount of cash we expect the government to have to put in to those entities this year; that amount is only $18 billion. Note that the Administration may not treat Fannie Mae and Freddie Mac this way in its budget presentation. For comparison purposes, if those two entities were treated as being separate from the federal budget, CBO's estimate of the deficit this year would be $966 billion---stil the highest, as a percent of GDP, since shortly after World War II.
- Economic factors have also boosted spending on programs such as those providing unemployment compensation and nutrition assistance as well as those with cost-of-living adjustments. (Such adjustments for 2009 are large because most of them are based on the growth in the consumer price index over the four quarters ending in the third quarter of 2008.)
Source : http://www.cbo.gov/publication/24860
http://www.cbo.gov/publication/24878
US Budget Deficit cannot be solved by a President alone. It is both a Republican & Democrat problem. Both parties have contributed to it. It can only be fixed by BOTH if not more parties working together. Compromising on key issues and moving forward. It had been done before in the 90's and it can be done again .
Last edited by ACDC; 08-11-2012 at 01:23 PM.
Although, i feel reforming US tax code and cutting common sense spending with help reduce US budget deficit big time. BOTH parties have failed to it. We should lay off the blame game as both parties are guilty. They all spend like a drunken sailor when they come into power. Congressmen and Senators from Both parties cater to special interests and are responsible for pork in the budget.
Maybe if we reform the Congress, it may help the overall grand scheme of thing.
I don't think so. There are some "non-budgeted" thinks like wars or the stimulus.
While the federal budget was ~$430 in 2008, the bank account looks a bit different:
Debt:
2007 8,951 2008 9,986
Don't know why you always post this chart.
True, I should update it. Then it would be worse.
I just ask since the 09 budget basically is from the Bush administration.
I'm sorry, who took control of Congress in '06?
It will be over $1 trillion by the end of the fiscal year in September, marking the 4 straight year in a row that ended with over $1 trillion deficit. What this means is that on an operating basis the government borrowed almost 50 cents for every dollar it spent. To make that mean something, just look at your life and double the spending, but stay earning the same salary you are presently making; so, essentially using your credit card to not only pay for the increased spending but also the additional cost of the debt you are borrowing. Unfortunately for you, you cannot print money to make life easy, which is exactly what the government has been doing.
Blah,blah blah. You stupid ****ers are rearranging the deck chairs on the Titanic after the iceberg hit. Come to think of it, if BO had been the Captain of said ship, he probably would have backed up and rammed it again.
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