Growing concern with Obama’s deficits
Federal Reserve Chairman Ben Bernanke urged Congress and the administration to cut record-high budget deficits, warning that they could erode investor confidence and endanger the economy’s long-term health.
Bernanke’s comments came as concerns grow at home and overseas about the United States’ mounting red ink.
Surprised it has taken this long.
The White House estimates that the government will rack up an unprecedented US$1.8 trillion (NZ$2.78 trillion) budget deficit this year. That would be more than four times last year’s all-time high.
Obama have pushed the deficit is so high now, I don’t think it can ever be tamed by his sucessors. Overall federal revenue is US$2.5 trillion so the deficit is around 66% of the revenue. So even if revenue grew at 5% a year, and expenditure never grew, it would take a decade to get rid of it – and no way expenditure won’t grow.