Difference between revisions of "Federal Budget Deficit"
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| + | [[File:Obama deficits 2009-2010.JPG|275px|right|thumb|Under President Obama, the federal deficit is approaching 100% of [[Gross Domestic Product]] (GDP). The Greek Debt Crisis of 2010 was preciptated when the Greek deficit reached 115% of GDP.]] | ||
'''Federal Budget Deficit''' is the difference in any year between the [[government]] revenue and the government spending. The national [[debt]] is the cumulative unpaid total of the annual [[deficit]]. The government essentially always runs a deficit, in large part due to [[Medicare]] expanding far beyond [[CBO]] expectations. | '''Federal Budget Deficit''' is the difference in any year between the [[government]] revenue and the government spending. The national [[debt]] is the cumulative unpaid total of the annual [[deficit]]. The government essentially always runs a deficit, in large part due to [[Medicare]] expanding far beyond [[CBO]] expectations. | ||
Revision as of 19:42, October 15, 2010
Under President Obama, the federal deficit is approaching 100% of Gross Domestic Product (GDP). The Greek Debt Crisis of 2010 was preciptated when the Greek deficit reached 115% of GDP.
Federal Budget Deficit is the difference in any year between the government revenue and the government spending. The national debt is the cumulative unpaid total of the annual deficit. The government essentially always runs a deficit, in large part due to Medicare expanding far beyond CBO expectations.
- Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later. The federal government does not follow the rule, so promises for Social Security and Medicare don't show up when the government reports its financial condition. Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined. Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.