Trump Administration on Track for $1 Trillion Budget Deficit This Year

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The Trump administration is on track to post a 2019 fiscal year budget deficit of over $1 trillion. These are the kind of budget deficits we would expect to see during a deep recession, not an “economic boom.”

The government got off to a good start at achieving this illustrious achievement last month. According to the Treasury Department report, the deficit came in at $100.5 billion in October. That represents a 58 percent increase from the $63 billion deficit recorded in October 2017. Spending rose 18 percent year-on-year. Revenues only increased by 7 percent.

The month-on-month increase was impacted by a quirk in the calendar. Total outlays were much higher this October compared to last year because Social Security payments for October 2017 went out in September due to Oct. 1 falling on the weekend. Nevertheless, we should have seen a decrease in this year’s September outlays compared to last year and that didn’t happen. The September 2018 deficit was significantly bigger (119.116) than September 2017 ($7.886 billion) even without the October Social Security payments falling in September this year. The bottom line is spending is going up year-over-year.

Spending last month continued the pace of the last fiscal year. The federal government ended 2018 with the largest budget deficit since 2012. Uncle Sam ended 2018 $779 billion in the red, adding to the ballooning national debt. The CBO forecast this year’s deficit will come in close to $1 trillion. The current Treasury Department estimate projects a total fiscal 2019 deficit over the $1 trillion mark, coming in at $1.085 trillion.

The national debt expanded by more than $1 trillion in fiscal 2018. It currently stands at over $21.7 trillion. According to data released by the Treasury Department, fiscal 2018 gave us the sixth-largest fiscal-year debt increase in the history of the United States. (If you’re wondering how the debt can grow by a larger number than the annual deficit, economist Mark Brandly explains here.)

Although the economy is supposedly in the midst of a boom, U.S. government borrowing looks more like we’re in the midst of a deep recession. Long-term US debt sales have risen to a level not seen since the height of the financial crisis. In October alone, the US Treasury sold over $80 billion in public debt. The government spent $32 billion simply paying the interest on outstanding debt. That was roughly a 30 percent increase from a year ago.

Annual interest payments already approach $500 billion. Every uptick in the interest rate increases that number. At the current trajectory, the cost of paying the annual interest on the U.S. debt will equal the annual cost of Social Security within 30 years.

This is not good news for the U.S. economy. Large levels of debt retard economic growth. This explains why despite what is supposed to be a booming economy, revenues to the U.S. Treasury are only up 7 percent year-on-year. Most of that increase came from tariffs and excise taxes. Corporate and individual tax receipts are up around 1 percent.

Several studies have estimated that economic growth slows by about 30 percent when the debt to GDP ratio rises about 90 percent. Most analysts say the U.S. economy is already in the 105 percent range.

Michael Maharrey [send him email] is the Communications Director for the Tenth Amendment Center, where this article first appeared. He proudly resides in the original home of the Principles of ’98 – Kentucky. See his blog archive here and his article archive here. He is the author of the book, Our Last Hope: Rediscovering the Lost Path to Liberty. You can visit his personal website at MichaelMaharrey.com and like him on Facebook HERE

4 thoughts on “Trump Administration on Track for $1 Trillion Budget Deficit This Year”

  1. TBTF banks embezzle from the government using the exclusive handling of Treasury securities accounts which have never been audited. GAO has authority to audit the accounts. TreasuryDirect confirms the funds exist.

    sign the petition for GAO to audit embezzle (trillion annually) by TBTF banks using govt fiscal agent (FRBNY) start @ https://www.scribd.com/document/393590682/

  2. The way Wall Street is alleged to use their gov. fiscal agent to embezzle $1 trillion annually from the government is posted at https://thedailycoin.org/2018/08/16/a-look-at-the-federal-reserve-through-a-different-lens/. It is alleged the money is used to fund NWO projects.

    Signatures in support of a Whitehouse.gov Petition for the GAO to audit the specific relevant accounts are being collected. Details are posted at https://www.scribd.com/document/393590682/.

  3. With 26 top secret levels above the President of the USA and a secret space program that hasn’t been paid in a while and wants to kill off 90 percent of the global population, do you really think that’s his fault or the fault of his administration? Listen to the Thomas Williams Truth Honor and Integrity shows on you tube if you want to know what’s really going on.

  4. You should have audited the Pentagon, just like any other business. I expected that the costs of auditing the Pentagon would be that high, as much as they (lost).
    Ofcourse the ones who are holding the high positions have calculated this all. It is a real shame, but let them audit and see where all the money went. What a mess!
    It is all incredible. And we don’t know even half of it. A lot of people got very rich over the backs of the taxpayers. But one day it will be all in the open and that day will come closer.
    You can’t escape.
    You don’t have to believe it, you will find out for yourselves. Ask God !

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