As the economy shows signs of cooling, record debt is lurking in the background.
Yesterday, the Treasury Department released its monthly statement on receipts and outlays showing that the deficit for the first 10 months of fiscal year 2019 is 27 percent higher than last year and 70 percent higher than during Obama’s final full year in 2016. In total, outlays through July topped $3.73 trillion, nearly $300 billion more than at this time last year. Meanwhile, revenue for the first 10 months of this year topped $2.86 trillion, roughly $100 billion more than this time last year.
Despite the complaints that the tax cuts would drain the Treasury, revenue is up three percent, but because spending skyrocketed by over eight percent, the deficit now stands at $867 billion with two months left to the fiscal year, 26.7 percent higher than this time last year. That means that our government is on track to bring back the trillion-dollar annual deficits of Obama’s first term.
For those keeping track, inflation is only increasing about 1.6 percent annually, so that is quite a spending accomplishment by the government.