If someone were to spend more than they earn, that difference is called the deficit. The deficit has been a problem for many nations, as politicians have repeatedly spent more money than they are pulling in from revenue. Running a deficit is tolerable if it is temporary and is closely followed by a surplus that paid off the accumulated debt. The problem arises if a government continually runs a deficit, which then causes the overall debt to increase.
Government forecasters are warning the U.S. budget deficit will more than double as a share of economic output by 2040 if current tax and spending laws remain unchanged.On Tuesday June 16, the Congressional Budget Office (CBO) released the 2015 Long-Term Budget Outlook. (Source: The Congressional Budget Office, June 16, 2015.)According. Read More
We need to learn from this example…Similar to the U.S. economy, only years earlier, the Japanese economy also burst following a boom in real estate prices. To help revive its economy, the Bank of Japan brought interest rates to near zero in 1999 and has done several rounds of quantitative easing since. The central bank of Japan has increased. Read More
Municipal bonds investors might be headed towards a storm, which may cause significant damage to their portfolios. Cities within the U.S. economy are in distress—they are struggling to keep their spending in order to not increase their budget deficit.Detroit, one of the biggest cities in the U.S. economy, was handed an emergency. Read More
The U.S. Department of the Treasury reported that the U.S. government incurred a deficit of $204 billion for the month of February 2013. So far, we are into the first five months of the government’s fiscal year (started October 1, 2012), and the U.S. government fiscal deficit has already grown by $494 billion. (Source: U.S. Department. Read More