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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