Trillion Dollar Deficits Incoming

[r3volution 3.0]

The U.S. Treasury Department reported last Friday that the federal budget deficit for the just-completed fiscal year had risen by $80 billion over fiscal 2016 to the ominous-sounding $666 billion, a number many people think is an omen for the coming of the devil or anti-Christ.

In this case they may be right: The spending and taxing policies about to be put in place by the Trump administration and the Republican-controlled Congress will balloon the federal deficit to $1 trillion or more every year going forward.

And unlike the four consecutive $1 trillion deficits recorded during the first years of the Obama administration, these trillion dollar annual deficits will be the result of enacted changes in federal spending and taxing rather than on a temporary economic downturn. Some of these changes will be permanent. Others will need to be reapproved annually but are unlikely to be rejected in the future.

As a result, the Trump/GOP-supported $1 trillion budget deficits are the new normal.

https://www.forbes.com/sites/stancollender/2017/10/22/the-trump-budget-legacy-a-permanent-1-trillion-federal-deficit/#124e7ed67a65

[Influenza]

Don't worry Rand's gonna cut down on aid to Pakistan so that number will be reduced to 664 Billion!!! #winning

[Zippyjuan]

They had been shrinking since the recession.

https://si.wsj.net/public/resources/images/NA-CG479_BUDGET_16U_20150713140009.jpg

[Zippyjuan]

https://www.usatoday.com/story/news/politics/2017/12/20/deficit-could-hit-1-trillion-2018-and-thats-before-full-impact-tax-cuts/969347001/


"When we had trillion-dollar deficits the last time, it was the result of one of the worst economic downturns we’ve seen in history. This will be completely self-inflicted," said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. “When the economy recovered, the deficits came down, not by enough, but this is the result purely of policies, not of a recession.

“Nobody is talking about paying for anything anymore,” she said.

[dannno]

Wow, good thing Trump is reducing spending and taxation, Hillary would have increased both.

[nikcers]

https://www.youtube.com/watch?v=5Mq2gclIsrE

[r3volution 3.0]

No worries gents.

As a certain top economistifier/presidential candidate once explained, "you never have to default because you print the money."

[spudea]

As a result, the Trump/GOP-supported $1 trillion budget deficits are the new normal.

this is horseshit. The author is looking at a CBO report and saying the GOP/Trump will be responsible for trillion dollar deficits. The author deceptively doesn't tell you that the BASELINE projections, meaning if congress changed nothing in respect to current projected revenues and outlays, there will be a 1 trillion dollar deficit every year starting in 2022. The CBO report also doesn't account for higher macroeconomic growth, only the President's spending proposals. Its the mandatory spending social programs that are exploding that will make $1 trillion budget deficits the new normal.

The report used in the article: https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52846-apb.pdf

[r3volution 3.0]

this is horseshit. The author is looking at a CBO report and saying the GOP/Trump will be responsible for trillion dollar deficits. The author deceptively doesn't tell you that the BASELINE projections, meaning if congress changed nothing in respect to current projected revenues and outlays, there will be a 1 trillion dollar deficit every year starting in 2022. The CBO report also doesn't account for higher macroeconomic growth, only the President's spending proposals. Its the mandatory spending social programs that are exploding that will make $1 trillion budget deficits the new normal.

...which neither Trump nor anyone in Congress (save Rand, Massie, et al) have any intention of cutting.

They're as blameworthy for sustaining those programs as FDR/LBJ were for creating them in the first place.

[nikcers]

It's okay Trump is offsetting extra spending by cutting LOL

947802588174577664


The Trump administration has revealed its master plan for securing the border -- and it's going to cost $33 billion.Of that total, $18 billion will be required for President Donald Trump's long-promised border wall, according to Customs and Border Protection documents obtained by CNN that were sent to lawmakers on Capitol Hill.

The remaining $15 billion would cover technology, personnel and readiness, the document says.

[r3volution 3.0]

I wonder if the wall estimate includes the amount by which the government will underpay the people whose private property it's planning to steal?

(rhetorical wonder..)

[Zippyjuan]

this is horse$#@!. The author is looking at a CBO report and saying the GOP/Trump will be responsible for trillion dollar deficits. The author deceptively doesn't tell you that the BASELINE projections, meaning if congress changed nothing in respect to current projected revenues and outlays, there will be a 1 trillion dollar deficit every year starting in 2022. The CBO report also doesn't account for higher macroeconomic growth, only the President's spending proposals. Its the mandatory spending social programs that are exploding that will make $1 trillion budget deficits the new normal.

The report used in the article: https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52846-apb.pdf

Spending/ deficits are the responsibility of Congress. They, by the Constitution, are responsible for writing and passing such bills (which must originate in the House). Republicans have controlled one or both for most of the last 22 years. They controlled the House for all but four of those years. Yes, that means that the GOP shares responsibility for those deficits. Presidents don't. They can suggest or sign a spending bill but they can't write one.

As for details, the 2017FY budget ended with a deficit of $666 billion. https://www.marketwatch.com/story/us-ends-fiscal-2017-with-666-billion-budget-deficit-2017-10-20

The tax cut bill alone is estimated to add $135 billion to the 2018 budget deficit (FY 2018 started in October though an actual 2018 budget has not yet been passed).

Adding in those $135 billion in tax cuts (next year that rises to $280 billion) and you are up to $810 billion deficit without adding another penny over last year. Trump wants to increase military spending by at least $100 billion over last year. Add in the mandatory "cost of living adjustments" in many social programs and it could easily hit $1 trillion as soon as next year. Budget cuts alone get us there next year. Don't forget disaster relief too.


Congress approved emergency disaster aid bills totaling $15 billion in September, $36.5 billion in October, and this week is arguing over adding another $81 billion to address California wildfires and Hurricanes Harvey, Irma and Maria.

That is another $100 or so billion. https://www.usatoday.com/story/news/politics/2017/12/20/deficit-could-hit-1-trillion-2018-and-thats-before-full-impact-tax-cuts/969347001/

The CBO report you link to was estimating the impact of Trump's proposed spending cuts (nearly all of which have since been abandoned) and it assumed that the tax cut bill would be "revenue neutral"- it wasn't. If it was "revenue neutral" any cuts for one person would be offset by additional taxes on somebody else. Instead of being revenue neutral (adding zero to deficits) the bill Trump signed will add a projected $1.5 trillion to the debt over the next ten years. It also assumed "Repeal and Replace of Obamacare" happened. That didn't.

[seapilot]

Today debt is money. Deficits means there is lots of money. Stop the debt there will be no more new money. As long as people accept the Frn as trade it will go on and on. Crypto-currency would eventually create competing currencies as RP talked about. This could destroy their debt system, which is why in the tax cut bill passed there was "surprise!" a new tax on all crypto trading added. Wonder who put that in there?

[Swordsmyth]

Today debt is money. Deficits means there is lots of money. Stop the debt there will be no more new money. As long as people accept the Frn as trade it will go on and on. Crypto-currency would eventually create competing currencies as RP talked about. This could destroy their debt system, which is why in the tax cut bill passed there was "surprise!" a new tax on all crypto trading added. Wonder who put that in there?

Now we will see just how invulnerable to government interference Cryptos really are, somehow I doubt they will live up to their fanboys' hype.