{"id":122744,"date":"2023-09-06T14:34:51","date_gmt":"2023-09-06T18:34:51","guid":{"rendered":"http:\/\/kendallharmon.net\/?p=122744"},"modified":"2023-09-07T07:39:06","modified_gmt":"2023-09-07T11:39:06","slug":"washington-post-the-u-s-deficit-explodes-even-as-the-economy-grows","status":"publish","type":"post","link":"https:\/\/kendallharmon.net\/?p=122744","title":{"rendered":"(Washington Post) The U.S. deficit explodes even as the economy grows"},"content":{"rendered":"
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The federal deficit is projected to roughly double this year, as bigger interest payments and lower tax receipts\u00a0<\/b>widen the nation\u2019s spending imbalance despite robust overall economic growth.<\/p>\n<\/div>\n

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After the government\u2019s\u00a0record spending in 2020 and 2021<\/a>\u00a0to combat the impact of covid-19, the deficit dropped by the greatest amount ever in 2022, falling from close to $3 trillion to roughly $1 trillion. But rather than continue to fall to its pre-pandemic levels, the deficit then shot upward. Budget experts now project that it will probably rise to about $2 trillion for the fiscal year that ends Sept. 30, according to the Committee for a Responsible Federal Budget, a nonpartisan group that advocates for lower deficits. (These numbers ignore President Biden\u2019s $400 billion student debt cancellation policy, which was struck down by the Supreme Court this year and never took\u00a0<\/b>effect.)<\/p>\n<\/div>\n

The unexpected deficit surge, which comes amid signs of\u00a0strong growth<\/a>\u00a0in the economy overall, is likely to shape a fierce debate on Capitol Hill about the nation\u2019s fiscal policies as lawmakers face a\u00a0potential government shutdown<\/a>\u00a0this fall and choices over trillions of dollars in expiring tax cuts. The Senate will return this week from August recess, and the House will be back the following week. Biden and House Speaker Kevin McCarthy (R-Calif.) approved a deal in June to raise the nation\u2019s borrowing limit, but it did little to alter the long-term debt trajectory.<\/p>\n

Read it all<\/a>.<\/p>\n

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🇺🇸 U.S. deficit explodes even as economy grows – Washington Posthttps:\/\/t.co\/IAXBFZ66WK<\/a> pic.twitter.com\/AEnOvk8hVP<\/a><\/p>\n

— Christophe Barraud🛢🐳 (@C_Barraud) September 4, 2023<\/a><\/p><\/blockquote>\n