Do deficits even matter?
They used to — at least in conservative circles. And even in some progressive circles when Republicans were in control of Washington D.C. But today, the federal government is running record deficits and has pushed the national debt over $22 trillion and virtually nobody even bats an eye.
In a recent Wall Street Journal article, John Yarmuth, chair of the House Budget Committee summed up the attitude toward the spending and debt in Washington D.C. He said he rarely hears from constituents concerned about rising deficits and debt. Many voters’ attitudes, he says:“There haven’t been any cataclysmic consequences, so why worry about it?”
The net worth of the US comes in at negative $21.5 trillion.
This according to the Financial Report of the United States Government recently released by the Treasury Department.
The federal government set an all-time record budget deficit in February. And this is with a Republican in the White House. The GOP is supposed to be the fiscally responsible party. In this episode of the Friday Gold Wrap, host Mike Maharrey offers some interesting analysis that reveals spending money in Washington DC is really a bipartisan sport. He also talks about Thursday’s selloff in gold and silver, explains why dollar strength is something of an illusion and illustrates how the way “the market” thinks is often pretty dumb.
The US federal government ran an all-time record deficit of $234 billion in February, according to a Treasury Department report released on Friday.
According to Business Insider, the February 2019 deficit topped the previous high of 231.7 billion set in February 2012.
Between Christmas 2017 and Christmas 2018, the US government added a staggering $1,370,760,684,441.54 to the national debt, according to Treasury Department figures.
If you split that up between all American, your share of Uncle Sam’s 2018 spending spree comes to about $4,178.10.
Well, the midterm elections are finally over. The Republicans managed to hold on to the U.S. Senate, but the Democrats took control of the House. The “Blue Wave” was more like a “Blue Ripple.” To me, it smells a lot like gridlock, which is generally good news if you’re a person who favors smaller government. Gridlock means very little will actually get done in Washington D.C. The government not doing anything – well, that doesn’t sound so bad.
But in his most recent podcast, Peter Schiff brought up a potential problem with a divided government. We will likely end up with even higher budget deficits.
In fiscal 2018, the national debt expanded by more than $1 trillion. According to data released by the Treasury Department, it was the sixth-largest fiscal-year debt increase in the history of the United States. A combination of increased spending along with shrinking revenues continues to expand the federal deficit and balloon the national debt.
GOP apologists insist the revenue shortfalls caused by tax cuts are temporary and economic growth spurred by tax relief will eventually turn things around. Tax relief is great, but without substantive government relief in the form of spending cuts, the promised economic growth won’t likely materialize.