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Deficit doesn't seem that bad: https://fred.stlouisfed.org/series/FYFSDFYGDP https://fred.stlouisfed.org/series/FYFSDFYGDP 2023's number will probably come in
by guelo 3y ago
Deficit doesn't seem that bad: https://fred.stlouisfed.org/series/FYFSDFYGDP https://fred.stlouisfed.org/series/FYFSDFYGDP
2023's number will probably come in better than Trump's pre-pandemic deficit.
- lizardking 3y agoSource? From a cursory Google search I’m seeing a 2019 deficit of of ~980 Billion vs a 2023 of 1.7 Trillion.
- guelo 3y agoDid you click on my link? gdp to deficit ratio
- cwalv 3y agoWait until the economy sneezes. Tax receipts fall, interest expense is only going up as more debt rolls over to higher Treasury rates.
- rich_sasha 3y agoThe pertinent fraction is usually public debt (total) to GDP, which stands at 130% and is quite high. Up to 60% is considered a low, healthy level, up to 100% is considered not terrible, 130% is beyond that. The US can get away with it, for a bunch of reasons, but essentially because it is such a powerful economy and trustworthy counterparty, but it is a high level nonetheless. For comparison, the "indebted EU"'s fraction is 83% at pixel time. UK, not in the EU anymore, struggling a bit with debt, it around 100%.
- guelo 3y agoThe crime was Trump's deficit-fueling tax cuts during boom times. If he had stayed on Obama's track we would have had decent surplusses leaving us more prepared for the covid recession. Most economic theories say to counterbalance recessions by cutting back during boom times and spending more during down times. Biden is bringing us back faster post-pandemic than Obama post '08 financial crisis. Which indicates that the pandemic spending was appropriate, even if it fueled temporary inflation we're now growing way faster than most other economies.