ThinkCivics News
An educated citizenry is a vital requisite
for our survival as a free people.
Join ThinkCivics+
  • Culture & Society
  • Economy
  • Health
  • US News
  • Faith
  • Science & Tech
  • World News
No Result
View All Result
ThinkCivics News
  • Culture & Society
  • Economy
  • Health
  • US News
  • Faith
  • Science & Tech
  • World News
Join ThinkCivics+
No Result
View All Result
ThinkCivics News
Join TC+
Home Economy

The Federal Budget Deficit is about to Hit Record-Breaking Levels (Again)—Here’s Why

In just one year, we're set to add roughly $20,935 in new debt per federal taxpayer.

FEE.org by FEE.org
July 7, 2021
in Economy
Reading Time: 3 mins read
0
0
The Federal Budget Deficit is about to Hit Record-Breaking Levels (Again)—Here’s Why

Custom Image By FEE | Image Credit PixaBay, Gage Skidmore

Debate continues in Washington about more multi-trillion-dollar spending plans. But we just got an ugly reminder that the federal spending we’ve already passed is bankrupting the country.

The nonpartisan Congressional Budget Office just released its latest projections, and they offer a dire warning indeed. The government analysts expect the annual federal budget deficit—the gap between spending and revenue—to hit an eye-popping $3 trillion in fiscal year 2021. That’s roughly $20,935 in new debt per federal taxpayer, to be added in just one year!   

This will be just slightly below the record-breaking deficit the government ran in fiscal year 2020. But nonetheless, this astounding $3 trillion sum is nearly 3 times higher than the already-high budget deficit for 2019. Relative to the size of the economy, it will be the second-largest budget deficit since 1945—which was incurred during World War II.  

Budget deficits and trillion-dollar sums are hard to conceptualize. So to understand what this means practically, here are 3 tangible ways skyrocketing federal debt hurts everyday Americans:

  1. We will be forced to pay trillions more in federal taxes just to cover the annual interest payments. Right now, even before all this new debt, taxpayers spend $800 million per day just servicing the interest on the national debt. 
  2. We will face slower economic growth and lower paychecks as the debt crowds out private sector investment and drags down the economy. According to the nonpartisan Committee for a Responsible Federal Budget, “A generic plan to gradually reduce the [national] debt to its historic average would… increase income per person by $5,500.” Going in the opposite direction has the opposite effect.
  3. We continue to court a fiscal crisis in the near-to-medium-term future. According to the Peter J. Peterson Foundation, high levels of federal debt mean “greater risk of a fiscal crisis” that “could further destabilize the U.S. economy and erode confidence in U.S. currency on an international scale.”

So, all Americans should be seriously concerned to learn that the debt will further explode in 2021. But why exactly are this year’s figures going to be so extreme?

After years of fiscal irresponsibility under Republicans and Democrats alike and with large entitlement programs spiraling toward bankruptcy, we were always going to run a large deficit in 2021, like we did in 2018, 2019, etc. But it wasn’t going to be so astronomical, like $3 trillion. 

What changed? One big factor is the multi-trillion-dollar spending package President Biden and Democrats in Congress forced through in the name of “COVID-19 relief” and “stimulus.” 

In reality, the package was full of unrelated waste and partisan projects. Plus, Ivy League economic projections show it will actually hurt the economy in the long run. But it did do one thing successfully: spend trillions of taxpayer dollars. And that’s one big reason why our debt problem is set to spiral even further out of control.

Brad Polumbo

Brad Polumbo

Brad Polumbo (@Brad_Polumbo) is a libertarian-conservative journalist and Policy Correspondent at the Foundation for Economic Education.

This article was originally published on FEE.org. Read the original article.

FEE.org

The Foundation for Economic Education (FEE) is a 501(c)3 educational foundation and has been trusted by parents and teachers since 1946 to captivate and inspire tomorrow’s leaders with sound economic principles and the entrepreneurial spirit with free online courses, top-rated in-person seminars, free books for classrooms, as well as relevant and worldly daily online content.

fee.org
Tags: Federal budgetFederal deficitGovernment spendingNational Debt

Related Posts

Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States

Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States

May 24, 2022
This Year’s World Economic Forum in Davos Is as Disturbing as You’d Expect

This Year’s World Economic Forum in Davos Is as Disturbing as You’d Expect

May 23, 2022

Is Trump A Modern Day Nostradamus? Watch His Prediction Of What Would Happen If Biden Won

May 23, 2022

U.S. economy may outpace China’s this year for the first time in nearly 50 years

May 21, 2022
Load More
Next Post
Furor over trans in LA spa proves progressives aren’t really feminists after all

Furor over trans in LA spa proves progressives aren’t really feminists after all

Left Started Culture Wars, Sen. Tom Cotton Says, and ‘Normal Americans Expect Us to Stand Up and Fight Back’

Left Started Culture Wars, Sen. Tom Cotton Says, and ‘Normal Americans Expect Us to Stand Up and Fight Back’

Ohio Passes Law Allowing Hospitals, Doctors To Refuse Procedures On Religious Grounds

Ohio Passes Law Allowing Hospitals, Doctors To Refuse Procedures On Religious Grounds

TODAY'S TOP STORIES

  • BREAKING: State Farm Exec Apologizes to Angry Agents, Says ‘We Made a Mistake With Our Involvement’ With GenderCool

    BREAKING: State Farm Exec Apologizes to Angry Agents, Says ‘We Made a Mistake With Our Involvement’ With GenderCool

    0 shares
    Share 0 Tweet 0
  • FBI Agent at Sussmann Trial Just Dropped a Bomb About an Ongoing Investigation

    0 shares
    Share 0 Tweet 0
  • Punks Attempt Another Smash and Grab, Pick Jewelry Store Where Employees Were Itching For A Fight

    0 shares
    Share 0 Tweet 0
  • Obamacare ‘Time-Bomb’ Puts Democrats in Further Peril Heading Into the Midterms

    0 shares
    Share 0 Tweet 0
  • Bill Maher Notices Something Odd About These Transgender Kids

    0 shares
    Share 0 Tweet 0

CNN National Security Analyst Calls For End Of Immigration Enforcement In Response To Texas School Shooting

by The Political Insider
May 26, 2022
0
CNN National Security Analyst Calls For End Of Immigration Enforcement In Response To Texas School Shooting
National Security

CNN national security analyst and former member of Barack Obama’s Homeland Security Advisory Council, Juliette Kayyem, called for a halt...

Read more

Jim Jordan to January 6 Committee: If You Want Me to Comply, Hand Over Your Documents

by The Political Insider
May 26, 2022
0
Jim Jordan to January 6 Committee: If You Want Me to Comply, Hand Over Your Documents
National Security

Representative Jim Jordan is challenging the constitutionality of the January 6 committee investigating the Capitol riot and demanding they hand...

Read more

Handwritten Notes From 2017 Show FBI Agents Mislead DOJ On The Trump-Russia Investigation

by The Federalist
May 19, 2022
0
Handwritten Notes From 2017 Show FBI Agents Mislead DOJ On The Trump-Russia Investigation
National Security

Hillary Clinton’s campaign lawyer Michael Sussmann is currently on trial for lying to the FBI about his role in pushing...

Read more

Jankowicz Got The Boot, But Biden’s ‘Ministry Of Truth’ Hired Replacements Are WORST

by ThinkCivics Newswire
May 19, 2022
0
Jankowicz Got The Boot, But Biden’s ‘Ministry Of Truth’ Hired Replacements Are WORST
National Security

The Department of Homeland Security (DHS) hired the co-author of the PATRIOT Act, arguably the harshest crackdown on civil liberties...

Read more
Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States
Economy

Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States

by Zero Hedge
May 24, 2022
0

As World Economic Forum head Klaus Schwab proclaimed that “the future is built by us” at the opening of the...

Read more
This Year’s World Economic Forum in Davos Is as Disturbing as You’d Expect
Economy

This Year’s World Economic Forum in Davos Is as Disturbing as You’d Expect

by RedState
May 23, 2022
0

It’s the time of year again when thousands of the world’s most powerful and wealthy people gather in Davos, Switzerland...

Read more
Is Trump A Modern Day Nostradamus? Watch His Prediction Of What Would Happen If Biden Won
Economy

Is Trump A Modern Day Nostradamus? Watch His Prediction Of What Would Happen If Biden Won

by The Political Insider
May 23, 2022
0

President Trump is many things, to friend and foe alike. Is being a modern day Nostradamus among them? At least...

Read more
U.S. economy may outpace China’s this year for the first time in nearly 50 years
Economy

U.S. economy may outpace China’s this year for the first time in nearly 50 years

by Just the News
May 21, 2022
0

The growth of the U.S. economy is set to outpace that of China's for the first time in nearly five...

Read more
Facebook Twitter RSS

Brilliantly

SAFE!

thinkcivics.com

Content & Links

Verified by Sur.ly

2022

Recent News

  • Kellyanne Conway Annihilates WaPo’s Taylor Lorenz For Messaging Her Teenage Daughter
  • CNN National Security Analyst Calls For End Of Immigration Enforcement In Response To Texas School Shooting
  • Republicans Cornyn, Crenshaw Cancel Appearances At Upcoming NRA Convention

Category

  • Culture & Society
  • Economy
  • Editorials
  • Education
  • Elections
  • Energy
  • Environment
  • Faith
  • Health
  • Immigration
  • Military
  • National Security
  • Politics
  • Science & Tech
  • US News
  • Videos
  • World News

© 2022 ThinkCivics Media. All Rights Reserved.

  • Login
  • Sign Up
No Result
View All Result
  • Home
  • About
  • Store
  • Contact Us
  • Join
  • Contribute

© 2022 ThinkCivics Media. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.