The money US over spend’s just keeps growing and GROWING……
America’s federal deficit will expand by about $800 billion more than previously expected over 10 years due primarily to two legislative packages approved this year, pushing the nation further into levels of debt unseen since the end of World War II, the Congressional Budget Office said Wednesday.
The CBO also said that the impact of higher trade barriers, primarily President Trump’s trade war, could hurt economic growth amid widespread fears of a recession.
The United States was already expected to hit about $1 trillion in annual deficits next year, an unusually high number particularly given that deficits normally contract during sustained periods of economic growth.
But that shortfall will expand by $1.9 trillion in new spending over the next decade due to a budget deal to avoid the spending cliff reached by congressional Democrats and Trump and an emergency spending package for the crisis at the U.S.-Mexico border.
Those budget increases will be partially offset by lower spending than projected because of cuts to interest rates, which along with other changes to the CBO’s forecasts reduce the deficit by more than $1 trillion over the next decade.
The new revisions reflect changes from the CBO report in May, before the budget deal or emergency aid package were passed.
The CBO report is likely to intensify concerns that the United States does not have enough fiscal space to stimulate the new economy to avoid a recession…