According to the U.S. Treasury, year-end data from September 2023 show that the deficit for the full year 2023 was $1.7 trillion, $320 billion higher than the prior year's deficit.
You may think that the deficit is a result of rising yields and that the central bank could have monetized the debt, but that would have meant higher inflation and an even worse deficit because the government would have increased expenditures well above the $6.1 trillion as it always does.
The United States government is unable to spend less than 22.8% of GDP, and no tax revenue measure can eliminate the deficit.
With $33.6 trillion of public debt and the administration's own estimate of the accumulated deficit for 2023-2022, public debt is going to soar by $14 trillion.
Even if the tax receipts had been in line with the government's estimate, the annual deficit would have been higher than $1.3 trillion.
Government spending is the only real source of the enormous deficit that is creating both an inflationary problem and a challenge for the U.S. dollar as a world reserve currency.
High public deficits mean lower growth, lower real wages, and more debt in the future.
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