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Federal deficit up 61 percent since last year

by Lynde Langdon
Posted 1/13/21, 06:12 pm

Heavy spending on coronavirus relief coupled with lower tax revenue meant the United States spent a staggering $572.9 billion more than it made in the last quarter of 2020. That’s a nearly 61 percent increase from the same time period the previous year. For the fiscal year ending Sept. 30, the U.S. government was in the red by a record $3.1 trillion

How bad is that? Democrats—and an increasing number of Republicans—say that deficit spending during an economic downturn ensures the economy keeps growing so it can afford its bills in the future. But critics say the government has taken that theory to the extreme in recent years, pushing the country’s debt to an unsustainable level.

Dig deeper: Listen to Nick Eicher and David Bahnsen’s analysis of the most recent coronavirus stimulus bill on The World and Everything in It podcast.

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Lynde Langdon

Lynde is a WORLD Digital's managing editor. She is a graduate of World Journalism Institute, the Missouri School of Journalism, and the University of Missouri-St. Louis. Lynde resides with her family in Wichita, Kansas. Follow Lynde on Twitter @lmlangdon.

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  • AlanE
    Posted: Thu, 01/14/2021 12:48 pm

    Now, here's an intriguing question. How much of this increase in deficit went to prop up major corporations in the last year? For mostly inexplicable reasons, the stock market soared in 2020. The next question, of course, concerns when the bill for all this comes due.