The US Government is predicted to run the largest budget deficit since 1945. This was the year that World War II ended. The large deficit is due to the different policies that the government has had to implement to help recover the economy from the coronavirus. The federal debt next year is predicted to exceed the size of the entire American economy. The last time this occurred was 1946. Additionally, the debt will reach a new high if it continues on this course.
To put this into perspective, the annual deficit is projected to hit $3.3 trillion in the budget year, which ends on September 30th. That is about 16% of the US GDP. The federal debt is projected to be 100% of GDP next year. In 2023, it is expected to climb $24.7 trillion, or 107% of GDP.
After World War II, the US focused on paying down the federal debt. The debt dropped to 44% of GDP by 1961. This was in part due to the booming economy. We are not in the same circumstances now because the economy is not in a postwar booming phase.
Do you believe the debt will stay on the course to hit $24.7 trillion in 2023, or things will begin to resolve with a reelection this November?
link to article: https://apnews.com/2e22a5f94e414f65429d9f91b7525c49
I believe the debt will continue to rise if Trump is reelected due to the fact that the debt has increased during his first 4 years. It would only make sense in my opinion for the debt to continue to increase under his presidency because he hasn't said anything about what he is going to do to change this fact.
ReplyDeleteI believe that debt will continue to rise no matter who is elected president. You can raise taxes, but it is not typically seen as favorable to raise taxes; people do not like less disposable income. You can lower government spending, but it is also not favorable to a good chunk of Americans to cut government programs. You can also print money to pay off debts, but that can quickly spiral out of control and lead to high inflation.
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