The US Budget Deficit Has Exploded Under Donald Trump

William James

The US budget deficit has exploded under Donald Trump.

President Donald Trump’s 2017 tax cuts, primarily for corporations and the wealthy, will again force the U.S. Treasury Department to borrow $1 trillion in order to cover the federal government’s increased spending in light of falling revenues — for the second straight year.

Bloomberg News reported the development late last month.

Via Axios:

Treasury borrowing surpassed $1 trillion during President Obama's first term as government spending soared amid the stimulus to combat the 2008 financial crisis, but it has steadily declined in the years since, settling down to $519 billion in 2017 before nearly doubling last year.

Bloomberg reported that the “fiscal 2018 U.S. budget gap hit a six-year high of about $780 billion, and the Congressional Budget Office forecasts it will reach $973 billion in 2019 and top $1 trillion the next year.”Though some financial experts are insisting that the U.S. economy remains strong — and stronger than many other advanced economies — others are not so confident and view these developments as red flags.

DoubleLine Capital LP’s Jeffrey Gundlach has warned that the U.S. economy will be plagued by an ocean of debt. He cited the fiscal 2018 rise in America’s national debt among risks in his annual webcast. Billionaire investor Seth A. Klarman, in a letter presented at the World Economic Forum in Davos, Switzerland, said global social tension, receding American leadership and rising debt levels all present a red flag.

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Comments (16)
No. 1-7
Catlady1116
Catlady1116

Yet Trump says he has dkne more for the economy than any president, EVER. This goesvyo show jow little he knows about economics, or anythinv else for that matrer.

gcontos
gcontos

why don't they show the spending Obummer did from 2008-2016. He spent more than Trump while decimating our military. At least we have a strong military to show for the current spending.

reality in the US
reality in the US

Lying Trump LOVES to take credit for an economy that he's done nothing to improve. He inherited a robust economy from Obama...period!

FLGirl123
FLGirl123

He (the orange man) knows nothing about the economy and has failed in so many ways!

Bhern
Bhern

President Barack Obama had the largest deficits. When Obama took office in 2009, the federal budget deficit was $10.6 trillion.8 By the time he left office in 2017, the federal budget deficit had nearly doubled to $19.9 trillion.8 That's an increase of about 86%.

WildOak
WildOak

The debate about who had/has the worst approach to the deficit is an interesting one, if for no other reason it leads to two sides both screwing up and pointing at the other saying, "but they did it, too!". It's childish. It's also difficult, as it can be difficult to compare apples to apples, which leads to further partisan bickering.

The deficit should be a common ground issue - we should all agree that it should be reduced, balanced. The political battle should be over how to do this in a moderate way so as to not disrupt the economy (which would lead to decreased revenue, a need for greater government spending, and a worsening deficit).

Obama did run up the deficit, but he also took over at a time of great economic peril. He also established a trend of a reduced deficit through out the latter part of his two term tenure. When he left office, the economy was solid and the budget was moving in the right direction (towards being balanced).

Trump's tax changes cut revenue, leading to a growing deficit despite a solid economy. And, each year his budget deficit has worsened. The trajectory is bad. Estimates I've seen show that his budget's will likely lead to a similar total increase in the federal deficit by the end of a second term.

Trump has squandered an opportunity to balance the budget, choosing instead to drop tax rates further from an historically low rate. While I agreed with the reduction in the corporate rate, the individual rate should have been left alone and budget cuts, including military, should have been implemented further (we spend more than the next 7 countries in the world combined on the military).

The hypocrisy of Trump and Republicans, who have historically been shrill about a balanced budget, shows either a lack of sincerity, integrity, or both, and arguing "well, Obummer did it, too" just confirms that hypocrisy.

Sammydunaway
Sammydunaway

So this is a prime example of fake news. Bloomberg running for president and trying to derail Trump. If I remember correctly (and I do). When Obama took office our country was at nearly 9 trillion dollars in debt. When Obama finished his second term we were nearly at 21 trillion dollars. So nearly 12 trillion dollars during Obama's terms.
Guess where we are as of today.. still a little over 21 trillion dollars. After 3 years of Trump's first term. So stop all this nonsense. Report on real news. It is because of this crap that our country is so divided.


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