The Shocking Growth In America's National Deficit

To say the national deficit is out of control may be an understatement. Our surging deficit is a sign of "spending has gone wild."

The important point is that COVID-19 has again given us a reason to divert our eyes away from the over the top spending taking place. It appears everyone in Washington has come together and simply agreed on, "I will support your spending if you support mine!" The fact remains that while both the Republicans and the Democrats mumble about being dissatisfied over the deficit, pork packed bills continued to be signed into law.  

Calling these spending packages "bipartisan" helps spread the blame around and masks just how dysfunctional Washington has become. Sadly, it allows all the players involved to take their victory laps and claim democracy works. When criticism does arise, those we have sent to Washington fall back on the stand that it was all done in order to avert problems down the road that would further damage the economy. 

A person would have to be delusional to think this explosion in national deficits is not occurring across the world. It is a reality no matter how much effort is made to mask the truth.  It is logical that if Biden does step into the Presidential office and nominate financial uber-dove and former Federal Reserve Chair, Janet Yellen, as the next Treasury Secretary the deficit growth will explode. Those of us appalled by how the Trump Mnuchin team has handled spending should be prepared for further disappointment. It has even been suggested and rumored that Yellen would leap into buying stocks if they were to decline as little as 20%.

A close look at the economy reveals it is only this massive and unsustainable deficit spending that continues driving our economy forward. The 2017 tax cuts have not panned out the way Republicans promised when they slashed corporate and income taxes. While we were told tax reform would mark a major shift in companies causing them to bring jobs back to America not enough of this has occurred. The structural issues that haunt America's competitiveness far outweigh the benefits brought forth from Trump's tax bill and lower taxes. The ugly truth is American companies still have little reason to bring jobs home and the budget deficit is set to widen significantly in the next few years even with healthy economic growth.

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Laurent Eliane 1 month ago Member's comment

Thanks. This remind of the road taken by usa, europe...will crash either by hyperinflation, currency crash (but all central banks are tight together till a breaking point!), civil unrest (but we were trained with covid to stay still, apart of each other, under twitter/facebook (oops..tiktok) control)...our choice to get out of the train is limited. Once the damages will be unsustainable, our leaders will divert the angerness, bitterness,violence against another nation. Destructive reconstruction.

Why should we always go through this. Huge deficit lead to fiat currency, lead to hyperinflation...and war machine.

We have the deficit, the military spending is on the big rise around the world,....one participant is knockning on the door.

Thanks Mr Wilds, a pleasure reading you

Bruce Wilds 2 months ago Author's comment

It is well worth your time to explore the National Debt Clock by clicking on the line below the image. In the upper right area of the clock is a "time machine" that allows you to travel back and compare how these figures have changed.