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U.S. deficit, debt on ‘unsustainable course’

by Harvest Prude
Posted 8/22/19, 12:13 pm

WASHINGTON—At the current rate of government spending, the federal deficit will top $1 trillion in fiscal year 2020. That’s the warning coming from the nonpartisan Congressional Budget Office. The projection announced Wednesday increased by $63 billion to account for the massive budget deal President Donald Trump and Democratic leaders in Congress reached earlier this summer. The report notes the red ink could increase if the ongoing trade war with China slows consumer spending.

What does this mean for the United States? The annual deficits, the difference between what the government takes in through revenue and what it spends, add to the national debt, which stands at about $22.5 trillion. CBO Director Phillip Swagel said the “federal debt, which is already high by historical standards, is on an unsustainable course.”

Dig deeper: Read my report in The Stew on how this summer’s budget deal revealed shifting priorities among Republican congressional leaders.


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Harvest Prude

Harvest is a reporter for WORLD based in Washington, D.C.

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  • AlanE
    Posted: Thu, 08/22/2019 01:02 pm

    This is enormous news. Yet even at World it warrants no more than mention in The Sift (which is still more than it gets most places). In all probability, America does not wake up to the problem until the consequences kick in in a serious way. To all outward appearances, the problem does not even register with President Trump.

  • Cyborg3's picture
    Cyborg3
    Posted: Fri, 08/23/2019 12:26 am

    I think you don’t see what Trump is doing! Trump is pushing us economically so we have more revenue coming in.  The fight with China over tariffs is to balance out the trade so that our nation prospers. The lowest unemployment rates in history are taking many people off of government benefits causing less debt. 

    Trump regularly pushes back on the cost. In building the new embassy in Israel, Trump pushed back on the1 billion cost initially put forward. On the new presidential plane, Trump pushed back too on the exorbitant cost. I think Trump wisely sees the political challenge of solving our economic mess.  He first needs to be re-elected an then he will address it more directly.

  • news2me
    Posted: Thu, 08/22/2019 03:18 pm

    I still think we have more money than the swamp says.  

    OBAMA NEVER WORRIED ABOUT IT. 

    Do the DEMS?

    At least TRUMP stopped some of the frivolous payments. 

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