Budget Deficit

A budget deficit is when you are spending more than you are taking in as income. When a government incurs a budget deficit, its spending programs are more than the revenue that it takes in from taxes, fees and tariffs. If the government’s income is greater than its spending, then it is said to be running a budget surplus. When a government incurs several years of budget deficits, it then builds a debt, which is the accumulation of the deficits. The total budget deficit is made up of two parts: structural and cyclical. A cyclical deficit stems from the economy. As the economic performance varies, the tax revenues and social-spending programs are adjusted to the cyclical pulse of the economy. A structural deficit stems from the amount of spending in excess of the cyclical portion, after the cyclical portion is paid off.

National Debt Rising 2.3 Times Faster than Budget Deficit?

By Wednesday, October 29, 2014

National Debt Rising 2.3 Times Faster than Budget DeficitFor the U.S. government’s fiscal year ended September 30, 2014, the government registered a budget deficit of $483 billion—the lowest budget deficit since 2007. In fiscal 2013, the budget deficit was $680 billion. In each of the previous four fiscal years, it was more than $1.0 trillion per annum. (Source: U.S. Department of th… Read More

Where the U.S. Dollar Is Headed and What It Means to You

By Monday, September 29, 2014

U.S. Dollar Is HeadedFor the U.S. federal government’s fiscal year, which ends this Tuesday, the Congressional Budget Office (CBO) predicts a budget deficit of $506 billion. (Source: Congressional Budget Office web site, September 26, 2014.)

But just because our annual deficit is declining, that doesn’t mean our national debt is rising by an equ… Read More

The Sobering Issue

By Friday, July 25, 2014

Why Our National Debt Will Double From HereAccording to the U.S. Congressional Budget Office, next year, the government is expected to incur a budget deficit of $469 billion and then another budget deficit of $536 billion in 2016. (Source: Congressional Budget Office web site, last accessed July 21, 2014.) From there, the budget deficit is expected to increase as far as the p… Read More

Sneaky New Taxes Way Government Debt Will Get Paid Down?

By Thursday, May 15, 2014

Getting Ready Mansion TaxAs it stands, the U.S. national debt has skyrocketed to above $17.4 trillion. With this year’s budget deficit expected to be around $500 billion, we’ll be at a national debt of $18.0 trillion in no time. In fact, a $30.0-trillion national debt is not out of the question by the end of the next decade.

Any way you look at these very big nu… Read More

Why Prices Will Rise Exponentially Over the Next 10 Years

By Tuesday, May 6, 2014

Social Security Health Care Costs Double 2014Something just doesn’t make sense here…

In 2013, the U.S. budget deficit came down to $680 billion. Finally, after four consecutive years of annual budget deficits of more than $1.0 trillion, the government got its annual “hole” under the trillion-dollar level, and it seemed as though we were headed in the right direction…. Read More