U.S. Deficit Falls to 680 Billion.
The federal government has announced that the annual deficit
is the smallest it has been since 2008. At the height of the recession, we were
1.4 trillion. Last year, our debt made up 6.8% of the GDP. Now that number has fallen to 4.1%.
The author at CNN.com attributes the success to “across-the-board budget cuts,
and tax increases on high-income households during the 2013 fiscal year”.
Fannie Mae and Freddie Mac returned a large portion of the bailout they
received in 2008. Areas where government spending increased were Social
Security and Medicare. Last year the deficit was estimated at 1.1 trillion
dollars, it was a big step to get our debt down to 680B. Let’s hope we stay on the right track.
http://money.cnn.com/2013/10/30/news/economy/deficit-2013-treasury/index.html?iid=SF_BN_River
It is very good to see that our deficit is being reduced. I think that imposing tax increases on high income households and budget cuts are effective methods to go about reducing the deficit. I also think that our government should consider mildly increasing corporate income taxes to help reduce the deficit. As of right now I think we are beginning to move in the right direction.
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