Going Broke? U.S. Deficit Tops $1 Trillion For Third Straight Year
- Posted on August 10, 2011 at 4:25pm by
Billy Hallowell
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WASHINGTON (The Blaze/AP) — The United States’ budget deficit has topped $1 trillion for a third straight year, adding pressure on Congress and the White House to make more progress a long-term plan to shrink the growing imbalance.
The Treasury Department said Wednesday that the deficit through July totals $1.1 trillion. Three years ago, that would have been a record high for the full year.
This year‘s deficit is on pace to exceed last year’s imbalance of $1.29 trillion but fall short of the record $1.41 trillion set in 2009.
For the first 10 months of the budget year, spending has risen 2.4 percent while revenue has climbed 8 percent. That’s a sign that more people are working and paying taxes, although unemployment remains high at 9.1 percent.
Record deficits have forced President Barack Obama and Congress to create a 12-member committee of lawmakers tasked with reducing the red ink over the next decade by $1.2 trillion. If the panel splits and cannot agree on a plan, severe across-the-board spending cuts would go into effect automatically. Below, watch for more about the panel:
The committee was a key part of a deal forged last week that allowed the government to boost its borrowing limit. But the deal fell short of the $4 trillion in cuts that Standard & Poor’s said was needed to achieve a credible deficit plan. As a result, S&P downgraded the U.S. government’s credit from AAA to AA+.
A political backlash over the record deficits allowed Republicans to gain control of the House in last year’s elections. Both parties say they are committed to reducing the deficits. But Republicans oppose tax increases and Democrats object to making big cuts to entitlement programs, such as Social Security and Medicare.
Before 2009, the deficit had never come close to $1 trillion in a single year. The government last recorded a budget surplus in 2001, when revenues were $127 billion greater than spending. The surpluses were expected to total $5.6 trillion over the next decade.
But the country was back in the red by 2002. The deficit grew after President George W. Bush won approval for broad tax cuts and launched the invasions of Iraq and Afghanistan.
In 2008, Bush’s last full year in office, the deficit reached $454.8 billion, a record at that time. And when the economy plunged into a deep recession, the yearly imbalance topped $1 trillion.
Higher spending on unemployment insurance and food stamps, and a sharp contraction in tax revenues, widened the deficit. And it grew even more after the Obama administration backed a $787 billion stimulus program to boost the economy.
The deficit also worsened after Obama and congressional Republicans agreed to extend Bush’s tax cuts for two more years.
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Comments (32)
GulfPeg
Posted on August 11, 2011 at 5:32amOBAMACARE has to be eliminated!
Report Post »Bill Rowland
Posted on August 11, 2011 at 5:27amLook at who they are putting on the “super” committee. Now tell me they are serious about actually accomplishing anything.
Report Post »Navyveteran
Posted on August 11, 2011 at 10:57amI just want to take the time to thank all of all our “elected servants” who continue to vote for these debt ceiling raises for making this all possible.
Report Post »FATTYDAD
Posted on August 11, 2011 at 2:26amFOX AND CLOWARD AND PIVIN, BABY. this thing inhabiting our WhiteHouse has vowed to destroy this economy called America and BY GOD he’s gonna do it if we dont get our teabags after him. After all, the socialist progressives are coming to the culmination of a fifty-year plan if we will let them. Not as long as me an Rush have a breath left, an Glenn, too. Three men left standing, at least!
Report Post »powhatan
Posted on August 11, 2011 at 12:07amAre we now like “Northern Ireland” fighting for OUR independence (again)?
Report Post »powhatan
Posted on August 11, 2011 at 12:06amNot to worry…Harry Reid has put the word SUPER in front of committee…We are all saved now!
Report Post »Relic242
Posted on August 10, 2011 at 10:45pmThe Debt talks and the Deal struck was all a pre planned hoax with most of the gullible citizens of America following along like it was real. It was a sham. Preplanned by both parties.
Report Post »Nothing has changed. Nothing will change. America is survival of the fittest, period.
megansmom
Posted on August 11, 2011 at 5:27amActually it’s a diversion. While we are debating this issue our president negotiates to give more of our jobs to Vietnam, regulate more industries out of businesses the new trucking regulations and tell the people in small towns what they can do with their property
Report Post »Steel Awesome
Posted on August 10, 2011 at 10:10pmPretty soon we‘ll all be using Parker Brothers’ Monopoly money for our currency.
Report Post »ProbIemSoIver
Posted on August 10, 2011 at 10:08pmlol. I knew we were broke when we Apple computer had more in the bank than the U.S. government did last month, before the checks went out. 80 billion we had. And a 14 trillion dollar deficit? hmmm. Thats the equivalent of having 80 dollars on hand but a $14,000 debt. These guys are robbing Peter to pay Paul. Floating checks. All bums, who need to go. their actions are absolutely unacceptable. I would say incompetent, but this is all by design. We can make them go, Peacefully. The “Dereliction of Duty” clause in The Declaration of Independence says we can. Oh YES WE CAN !!!!!! Now that’s some change I can believe in !!!!
Report Post »ginger100
Posted on August 10, 2011 at 10:02pmIt’s already set in stone
http://en.wikipedia.org/wiki/Georgia_Guidestones
When the money is all gone and we are living in a Road Warrior movie, I’m gonna be a punk motorcycle rider with a liberal be-atch on a dog leash riding bitch in the back.
Report Post »Table Crumb
Posted on August 10, 2011 at 9:16pmNot completely accurate here but: about 42 trillion in private debt, 14+ trillion public debt, 125 trillion in unfunded liability as our ship sails into the sunset.
We get to have the privelege of paying for it; the working-class, we should all be proud of the sacrifice and for sacrificing our kids in the name of having the privilege to pay for all this debt.
There’s not enough dollars in the world if you gathered all of it to pay for this debt. What a great way to honor our founders and our children and what a great selfless way to treat ourselves. I think for the first time in my life, I can say that I am proud of this/my country…!
Report Post »Gypsy123
Posted on August 10, 2011 at 8:32pmWhen less than half of the country works and takes care of the other half you can bet you are going to be broke. It is unsustainable.
Report Post »TheCenturion
Posted on August 10, 2011 at 8:29pmWhat do you bet, the dictator in the WH spends ALL of the $2.4 trillion he was just handed by the republicans(establishment) and DEMANDS more before the end of his career(term)?
I’m betting that the next BIG “debate”(where Obamao and Reid demagogue and Boehner caves) is the 2012 budget deal. Here are the demands that are forthcoming;
1) Another stimulus for jobs – the republicans and the TEA Party will be accused of taking the unemployed hostage. The republicans will cave and all the money will go to union jobs to bolster the democrat re-election coffers. Too bad for them, it won’t matter!
.
2) Another extension of unemployment benefits – same demagoguery as #1
3) Taxes will be raised through the “super committee” because we can’t allow them to gut defense and Medicare provider payments — isn’t that the pot calling the kettle black, reps are always acused of throwing granny under the bus, but the communists get away with DOING just that. AND more than once, because they did it in Obamacare too with a double whammy — they cut payments to providers AND they implemented IPAB(Independent Payment Advisory Board, aka DEATH PANELS)
It’s AMAZING the hypocrisy these criminals get away with!
Report Post »Geopatriot
Posted on August 10, 2011 at 8:24pmAnd they have the mitigated gaul to question why S&P made the decision to lower our credit rating?? I don’t know about you, but I get it. You would almost have to be a member of the Administration or a reporter for the liberal media to miss this lightning rod!
Report Post »progressiveslayer
Posted on August 10, 2011 at 8:10pmThe fed keeps creating money from nothing further devaluing the dollar and inflation will get out of control,
Report Post »some say zimbabwe hyper inflation.We’ll have to eliminate whole departments to get out of this,hud,epa,doe,irs and many others.
RA0725
Posted on August 10, 2011 at 7:58pmI keep reading about the rifts, tax increases or cutting medicare and social security, but nowhere do I see anyone standing up and demanding stamping out all of the welfare fraud going on in this country. I believe in helping someone get a leg up, but this is out of control. We have multiple generations just gaming the system for the free lunch, cradle to grave. I want to hear some of the candidates address this subject.
Report Post »TheSnake
Posted on August 10, 2011 at 7:39pmThe majority of people walk around unaware of anything further than arms reach, they know that something is happening but its nothing to concern themselves to much about, it’s just too depressing. Then the hammer falls and the alarm bells rings and confusion erupts from their somnambulant minds and they rush for a safe way out. Too late…too late. The egg shell lays crushed from the fall and the kings men can do nothing.
Report Post »aznchef1003
Posted on August 10, 2011 at 7:37pmIt shows that the DEMS are still not serious to get the country back into a super power, Politician like John Kerry in the super committee.
Report Post »Dkoonz
Posted on August 10, 2011 at 7:25pmThank you Prez Obami, you are doing a great job destroying this country.
Report Post »lillymckim
Posted on August 10, 2011 at 7:34pmhe has his vacation bags packed and is heading to “Martha’s Vineyard”
what problems?.. what debt? what stock market?
Obamas only urgency is golf and vacations…. on our dime… thank you!
Report Post »jb.kibs
Posted on August 10, 2011 at 8:30pmgolddigger.
Report Post »TopOfTheMuffin2u
Posted on August 10, 2011 at 7:18pmIt‘s the Teaparty’s fault, er, I mean Bush’s fault, oh wait I mean it’s the meanspirited Republicans fault,no, it‘s Sarah Palin’s fault, yeah that’s it, oh no I mean it‘s the jet owner’s fault, no wait a minute, it‘s the millionaire’s and billionaire’s fault.
Report Post »Now you’re talking…….
RebeccaG
Posted on August 10, 2011 at 7:48pmDude! It‘s Trig Palin’s fault. LOL! Actually I think we can blame the Revolutionaries. If it weren’t for them we still be British. And we KNOW they don’t have these problems.
Report Post »Spock
Posted on August 10, 2011 at 7:04pmOne question to the fing liberals…..how’s that hopey-changy thing working for you???
Report Post »weneedrubio
Posted on August 10, 2011 at 7:02pmDon’t worry Obama has a plan, he‘s told us about it over and over but those terrorist Tea Partiers can’t accept the fact that a Black man is so much smarter then them. We’ll be fine after we spend ten trillion more on unions and the Soros college fund. After all we can raise taxes on the top one percent and get it all back in minutes. What me worry?
Report Post »starman70
Posted on August 10, 2011 at 6:56pmWhat else could you ever expect. With inane government agencies like The Department of Energy, The Department of Education, Amtrak all of which should be closed or sold off saving hundreds of millions of dollars yearly. With the government rebuilding Mosques and sewer systems in Arab, countries (all of whome hate us) = Millions of dollars wasted. The retirement perks, elaborate health care, freebies at government expense, all enjoyed by our Congressmen and Senators. The insane earmarks given out to study mating habits of Australian Fire Ants, study some shrimp on California – - the list is so long and exceptionally stupid that it is frustrating just to try to remember it.
CLEAN HOUSE IN 2012!
Report Post »mr.goodvibe
Posted on August 10, 2011 at 6:53pmWe’re on the highway to hell.
Report Post »AvengerK
Posted on August 10, 2011 at 6:46pmA democrat super majority in congress for the first year (which included then Senator Barack Obama in the Senate). A democrat supermajority in congress and a democrat president for the next year and a democrat led Senate with a democrat president for the next. Over 800 days and still no constitutionally mandated budget from the democrats in congress. Obama’s joke of a budget which increased spending by 3.7 trillion dollars was voted unanimously against earlier this year.
Report Post »texascav
Posted on August 10, 2011 at 6:46pmTrillions and trillions thats all Washington and this administration can do is spend us into bankruptcy. Our politicians are pushing us over the cliff.
Report Post »ProbIemSoIver
Posted on August 10, 2011 at 11:50pmTo implement One world currency, One World Bank, One World Government, One World Laws and Courts.
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