Federal Deficit Hits a new record: $1.42 Trillion

lewinskyCongrats to you Democrats and Barack Hussein Obama. The federal budget deficit has surged to a new, all-time record high of $1.42 trillion, as the recession as tax revenues to plunge while the government’s massive spending has put a debt on our kids and grandkids that will be nearly impossible to dig out of. The budget year ended on September 30th and the deficit is more than triple that of last year’s previous record under Dubya.

According to liberal biased NPR:

President Barack Obama has pledged to reduce the deficit once the Great Recession ends and the unemployment rate starts falling.

But economists worry the government lacks the will to make the hard political choices to cut spending and raise taxes to get control of the imbalances.

For 2009, the government collected $2.10 trillion in revenues, a 16.6 percent drop from 2008. The plunge reflected declining income tax collections as millions of Americans lost their jobs or saw their wages cut. Corporate taxes also plummeted as the recession squeezed companies’ profit margins.

Government spending last year jumped to $3.52 trillion, up 18.2 percent over 2008. The $700 billion financial bailout fund and increased spending and tax relief from the $787 billion economic stimulus program that Obama pushed through Congress in February drove the increase.

For September, a month when the government usually records surpluses, the deficit totaled $46.6 billion. That’s a sharp contrast to the $45.7 billion surplus in September 2008, the last time the government’s books were in the black.

In issuing the final budget figures, top administration officials said the president was determined to get control of the deficits in coming years.

“It was critical that we acted to bring the economy back from the brink earlier this year,” White House budget director Peter Orszag said in a statement. “The president recognizes that we need to put the nation back on a fiscally sustainable path.”

Failure to curb runaway deficits could trigger a financial train wreck that would push interest rates and inflation higher, and send the dollar crashing if foreigners suddenly started dumping their holdings of Treasury securities.


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October 16, 2009 · Filed Under Democrats

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One Response to “Federal Deficit Hits a new record: $1.42 Trillion”

  1. 101 Dead Armadillos on October 18th, 2009 8:43 pm

    [...] We could spend hours debating exactly whose fault it is, but the fact remains, the deficit is ours. Yours. Mine. Ours. It belongs to all of us, and now we have to figure out how to get out of the mess they (everyone [...]

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