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2019
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Frank Bernheisel: The View From Here
Frank Bernheisel
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Frank Bernheisel
Posted 03.18.13
Just Outside Washington

FRANK BERNHEISEL

The US Deficit

Some data on federal government spending and receipts is shown in the table below. The numbers all come from the budget documents of the Office of Management and Budget. They are not adjusted for inflation.

Keep in mind that the fiscal year for the federal government runs from October 1st to September 31st, so FY2008 started before the 2008 election.

The economy, as represented by the GNP, grew every year from 2000 through 2007, as shown by the increasing GDP. It declined in 2008 and 2009, the Great Recession. Also, the receipts (taxes, etc) for the federal government went down at the same time, duh. GNP started back up in 2010 as did Receipts.

Notice the Deficit has declined from the peak in 2009 and is projected to decline in the future. Could this be because of the Stimulus and the Tax Increase for the wealthy?

The projected decline of the Deficit will depend on two factors. First, the increase in GNP with the associated increase in Receipts and second the decline in defense spending.

If the House of Representatives is so keen on cutting the Deficit, they might think of trimming their own budgets. The money to run Congress is part of the Federal Budget. I do not read of any layoffs on the Hill due to the Sequester and certainly no salary cuts or travel cutbacks. By the way, the House worked this week and will work four days next week, then they go on a two week Easter break.

Federal Government Receipts and Expenditures (millions of $)

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