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The deficit is not in fact 2 trillion. Source: https://www.bea.gov/system/files/trad0225.png https://www.bea.gov/system/files/trad0225.png (and many other offic
by hijodelsol 2y ago
The deficit is not in fact 2 trillion.
Source: https://www.bea.gov/system/files/trad0225.png https://www.bea.gov/system/files/trad0225.png (and many other official documents)
Also, this is a false dichotomy.
- disgruntledphd2 2y agoI believe the OP was talking about the fiscal deficit, your chart shows the trade deficit.
- izend 2y agoIn CBO’s projections, the federal budget deficit in fiscal year 2025 is $1.9 trillion. Adjusted to exclude the effects of shifts in the timing of certain payments, the deficit grows to $2.7 trillion by 2035. It amounts to 6.2 percent of gross domestic product (GDP) in 2025 and drops to 5.2 percent by 2027 as revenues increase faster than outlays https://www.cbo.gov/publication/60870 https://www.cbo.gov/publication/60870 IMO, 5%+ percent of gross domestic product (GDP) in a country with massive trade deficits is not sustainable.
- croemer 2y agoNominal GDP growth was 5% in December. As long as share of GDP is constant things are sustainable.
- kogus 2y agoDebt as a % of GDP is not constant, and is on track to grow "far beyond any previously recorded level", according to the Budget Office. [1] [1]https://www.cbo.gov/publication/61187 https://www.cbo.gov/publication/61187
- ojbyrne 2y ago"The budget projections are based on CBO’s economic forecast, which reflects developments in the economy as of December 4, 2024. They also incorporate legislation enacted through January 6, 2025." Out of date!
- croemer 2y agoI think they meant budget deficit, whereas you refer to trade deficit.
- ArnoVW 2y agoThat graph shows a 130B monthly deficit. So maybe not 2B but still 1.5B on a yearly basis.