Federal deficit higher in July, $1.27T this year

[Goobieman]

Record federal deficit climbs higher, $180.7 billion in July, $1.27 trillion so far this year
By Martin Crutsinger, AP Economics Writer

WASHINGTON (AP) -- The federal deficit climbed higher into record territory in July, hitting $1.27 trillion with two months remaining in the budget year.

The Treasury Department said Wednesday that the July deficit totaled $180.7 billion, slightly more than the $177.5 billion economists had expected.

The Obama administration is projecting that when the current budget year ends on Sept. 30, the imbalance will total $1.84 trillion, more than four times last year's record-high.

The soaring deficits have raised worries among foreign owners of U.S. Treasury securities including the Chinese, the largest holder of such debt.

Massive amounts of government spending to combat the recession and stabilize the U.S. financial system have pushed the deficit higher. The cost of wars in Iraq and Afghanistan, along with depleted government tax revenues, also are major factors.

The July deficit reflected government spending of $332.2 billion, a record amount for any month and up from outlays of $263.3 billion in July 2008. Of that increase, about $25 billion reflected the fact that Aug. 1 was a Saturday this year, requiring many government benefit checks to be sent out earlier and counted as spending in July.

Federal deficit higher in July, $1.27T this year - Yahoo! Finance

Did anyone catch this part:

The Obama administration is projecting that when the current budget year ends on Sept. 30, the imbalance will total $1.84 trillion, more than four times last year's record-high.

$1.84T is >90% of the TOTAL of the deficts run under GWB.

:shock:

 

[Kandahar]

Federal deficit higher in July, $1.27T this year - Yahoo! Finance

Did anyone catch this part:



$1.84T is >90% of the TOTAL of the deficts run under GWB.

:shock:

Yep, a huge recession will do that. :roll:

 

[Goobieman]

Yep, a huge recession will do that. :roll:

I wondered how long it would take someone to post an excuse.

 

[Kandahar]

I wondered how long it would take someone to post an excuse.

A deep recession means that tax revenues fall off a cliff because individuals/businesses aren't making as much money to tax. It also means that tax expenditures will increase because there are more unemployment claims and more strains on anti-poverty programs...not to mention bailouts and stimuli.

Hmm. Less tax revenue + more tax expenditure = Bigger deficit. How is this an excuse?

10th grade economics fail.

 

[Kandahar]

Oh and by the way, since you insisted on making this a partisan issue instead of a legitimate complaint: The 2009 federal budget was signed by George W. Bush, not Barack Obama.

 

[Kernel Sanders]

One of these days something is gonna give. Too bad Obama's committed to "stay the course" on health care. Our economy needs that burden like it needed two wars and tax cuts. This time around the burden is bigger and we're still carrying our old baggage. If I had a kid that spent like the federal government I'd hack up the damn credit cards

 

[stekim]

Oh and by the way, since you insisted on making this a partisan issue instead of a legitimate complaint: The 2009 federal budget was signed by George W. Bush, not Barack Obama.

Right and wrong. The budget signed by Bush did not include the bailout or the stimulus. Bush supported the bailout and was not around for the stimulus, so they both need to take credit for it. I know the partisans hate to hear that, but tough.

 

[Goobieman]

Yep, a huge recession will do that. :roll:

Well, lets see.

The recession started in December 2007
It's official: U.S. in a recession since December 2007 - Dec. 1, 2008

Since 1st quarter of 2008, quarterly GDP growth was:
2008
-0.7 +1.5 -2.7 -5.4
2009
-6.4 -1.0

Unemployment 2008 (by quarters)
4.9% 5.4% 6.0% 6.9%
2009
8.0% 9.3%

Inflation 2008 (by quarter)
+4.1 +4.4 +5.3 +2.0
2009
+0.0 +1.1

This is a "huge" recession, compared to...?

And then, explain how a "huge" recession excuses almost $2T (~15% of the GDP) in deficits.

 

[Goobieman]

A deep recession means that tax revenues fall off a cliff...

Because ALL spending is voluntary, falling revenues do not necessitate deficits in any way shape or form, and thus are not an excuse for same.

We have a $1.8T deficit for no reason other than The Obama and The demns in congress CHOSE to run one.

 

[Goobieman]

Oh and by the way, since you insisted on making this a partisan issue instead of a legitimate complaint: The 2009 federal budget was signed by George W. Bush, not Barack Obama.

Yes... and written by a Dem congress, and then further increased upon by The Obama and said Dem congress.

No partisan points for you -- sorry.

And the complaint -is- legitimate, partisan point or not.

 

[Strucky]

Yep, a huge recession will do that. :roll:

And huge spending sprees by our current government make it even worse.

 

[Kandahar]

Well, lets see.

The recession started in December 2007
It's official: U.S. in a recession since December 2007 - Dec. 1, 2008

Since 1st quarter of 2008, quarterly GDP growth was:
2008
-0.7 +1.5 -2.7 -5.4
2009
-6.4 -1.0

Unemployment 2008 (by quarters)
4.9% 5.4% 6.0% 6.9%
2009
8.0% 9.3%

Inflation 2008 (by quarter)
+4.1 +4.4 +5.3 +2.0
2009
+0.0 +1.1

This is a "huge" recession, compared to...?

Uhh compared to every other recession since the Great Depression, including the 1982 recession which was formerly the largest.

You think -5.4% growth in Q4 2008 and -6.4% growth in Q1 2009 is minor? :shock:

And then, explain how a "huge" recession excuses almost $2T (~15% of the GDP) in deficits.

Well, think about all the things we've spent money on this year (above and beyond what we normally spend money on). How many of those expenditures would have happened if the economy was booming? Not many.

 

[apdst]

We're in the middle of a badass recession. Alot of people are making less than half what they made last year. Most folks don't have the money to pay their taxes in this economy. A tax cut would rake in billions, but we know that ain't gonna happen.

 

[Crunch]

Yep, a huge recession will do that. :roll:

It's Bushes fault, he caused it all.... everything is Bushes fault, and will be until the end of time.

 

[Kandahar]

It's Bushes fault, he caused it all.... everything is Bushes fault, and will be until the end of time.

Did you see me mention Bush anywhere in that post to which you responded? No? I'm pretty sure I didn't.

Welcome to the forum. You're off to a great start. :2wave:

 

[Crunch]

A deep recession means that tax revenues fall off a cliff because individuals/businesses aren't making as much money to tax. It also means that tax expenditures will increase because there are more unemployment claims and more strains on anti-poverty programs...not to mention bailouts and stimuli.

Hmm. Less tax revenue + more tax expenditure = Bigger deficit. How is this an excuse?

10th grade economics fail.

Makes perfect sense.... we are in "the worst recession since the great depression", so let's spend $870,000,000,000 on a stimulus that didn't stimulate anything except more government and payback some political debts, then increase the budget by $500,000,000,000 to fund more big government, then, just to make sure we are totally broke, let's fund a $2,000,000,000,000 government heath care system.

So you must be right.... Obama and this Congress must have failed 10th grade economics.

 

[Crunch]

Did you see me mention Bush anywhere in that post to which you responded? No? I'm pretty sure I didn't.

Welcome to the forum. You're off to a great start. :2wave:

I just thought I'd get that out of the way...... it was sure to come up by the 3rd page. :mrgreen:

 

[donsutherland1]

Did anyone catch this part:
$1.84T is >90% of the TOTAL of the deficts run under GWB.

It should be noted that had the Bush Administration not kept signficant expenditures off-budget, the deficit would have been substantially higher. For example, during President Bush's last year in office, gross public debt rose by just over $1 trillion. In part, the recession's rapid deepening contributed. However, in part, earlier tax policy changes, the creation of Medicare Part D, and the off-budget treatment of such expenditures as the costs associated with the Iraq war also contributed. IMO, policy differences aside, transparency would be served by keeping all expenditures on-budget.

Of course, the government is not alone in carrying out practices that limit transparency. In the private sector, major items e.g., derivatives exposures, etc., are generally maintained off the balance sheet, stock options are not expensed, etc.

 

[Scarecrow Akhbar]

I wondered how long it would take someone to post an excuse.

Didn't take long.

There are only two reasons socialists can think of for the presence of a budget deficit:

Taxes aren't high enough.

People aren't paying enough taxes.

 

[donsutherland1]

Well, lets see.

This is a "huge" recession, compared to...?

The current recession is the largest of the post-WW II era. The five worst recessions during that timeframe are:

Peak-to-Trough Contraction in Real GDP:
1. 2007-Present: -3.9%
2. 1957-58: -3.7%
3. 1973-75: -3.2%
4. 1981-82: -2.9%
5. 1953-54: -2.6%

Furthermore, in the current recession, the M1 money multiplier collapsed by 47%. During the Great Depression, the multiplier fell by 60%. No other post-WW II recession saw the money multiplier plunge by anything close to what happened during the current recession. Had the Fed not stepped in with collosal monetary stimulus, the money supply would have crashed and the economy almost certainly would have fallen into the kind of debt-deflation spiral that was at the heart of the Great Depression.

 

[American]

Someone was defending Obama's deficits on another thread, I'm sure they'll be here soon.

 

[obvious Child]

We're in the middle of a badass recession. Alot of people are making less than half what they made last year. Most folks don't have the money to pay their taxes in this economy. A tax cut would rake in billions, but we know that ain't gonna happen.

Huh? If people cannot pay their taxes now, a tax cut which would also increase the deficit wouldn't cause people to pay their taxes anyways. If you cannot pay a 15% tax bracket, you're not going to be able to any a lesser one. Your argument fails to understand that all points on the laffer curve do not behave the same.

If tax cuts really increased revenue over the baseline collected, tax cuts would pay for themselves. Find me a reputable economist who supports that.

 

[celticlord]

It should be noted that had the Bush Administration not kept signficant expenditures off-budget, the deficit would have been substantially higher. For example, during President Bush's last year in office, gross public debt rose by just over $1 trillion. In part, the recession's rapid deepening contributed. However, in part, earlier tax policy changes, the creation of Medicare Part D, and the off-budget treatment of such expenditures as the costs associated with the Iraq war also contributed. IMO, policy differences aside, transparency would be served by keeping all expenditures on-budget.

Debt to the Penny (Daily History Search Application)

Total Public Debt as of 11 August 2009: 11,666,485,985,007.89
Total Public Debt as of 20 January 2009: 10,626,877,048,913.08

Change in total public debt: 1,039,608,936,094.81

Total Public Debt as of 11 August 2008: 9,575,181,268,036.06
Total Public Debt as of 20 January 2008: 9,188,640,287,930.39

Change in total public debt: 386,540,980,105.67

Total Public Debt as of 11 August 2007: 8,968,607,956,049.61
Total Public Debt as of 20 January 2007: 8,675,085,083,537.48

Change in total public debt: 293,522,872,512.13

Total Public Debt as of 11 August 2001: 5,738,213,090,042.93
Total Public Debt as of 20 January 2001: 5,727,776,738,304.64

Change in total public debt: 10,436,351,738.29

Net aggregate spending on Dear Leader's watch is several orders of magnitude larger than anything even contemplated on Bush's.

 

[Orion]

The current recession is the largest of the post-WW II era. The five worst recessions during that timeframe are:

Peak-to-Trough Contraction in Real GDP:
1. 2007-Present: -3.9%
2. 1957-58: -3.7%
3. 1973-75: -3.2%
4. 1981-82: -2.9%
5. 1953-54: -2.6%

Furthermore, in the current recession, the M1 money multiplier collapsed by 47%. During the Great Depression, the multiplier fell by 60%. No other post-WW II recession saw the money multiplier plunge by anything close to what happened during the current recession. Had the Fed not stepped in with collosal monetary stimulus, the money supply would have crashed and the economy almost certainly would have fallen into the kind of debt-deflation spiral that was at the heart of the Great Depression.

Glad you showed up. You make economics look so easy with your spot on explanations, but of course it takes expertise and experience which clearly you have. Thanks for shedding light on reality, as usual.

:applaud

 

[Goobieman]

It should be noted that had the Bush Administration not kept signficant expenditures off-budget, the deficit would have been substantially higher.

Like... what?
The CBO revenue/spending numbers include ALL spending, on and off budget.

For example, during President Bush's last year in office, gross public debt rose by just over $1 trillion.

FY008 revenue: $2524.3B
FY2008 spending:$2982.9B
Deficit: $458.5B

Never mind that Bush isn't President, and whatever Bush did, it doesnt mitigate the severtity of the current situation.