As the federal government’s fiscal year 2013 wheezes to a close
without a budget in place for fiscal 2014, here is some basic
information everyone should understand.
According to the Congressional Budget Office (CBO), current spending levels are estimated to result in a $560 billion federal deficit in 2014, smaller than last year, but projected to start growing again by 2016.
Deficits can hurt the economy by forcing the government to borrow and add to the national debt owed to the public—presently about $12 trillion, or roughly 72 percent of the whole economy—which hurts the economy in the long run. That same borrowing might cause businesses to delay investing in the economy in case their taxes are raised to pay for the added debt, and creating short-term pain. So, what would it take to actually eliminate the deficit?
Let’s start by considering how much of federal spending is “mandatory” and how much is “discretionary.”
http://reason.com/archives/2013/09/26/the-federal-governments-budget
According to the Congressional Budget Office (CBO), current spending levels are estimated to result in a $560 billion federal deficit in 2014, smaller than last year, but projected to start growing again by 2016.
Deficits can hurt the economy by forcing the government to borrow and add to the national debt owed to the public—presently about $12 trillion, or roughly 72 percent of the whole economy—which hurts the economy in the long run. That same borrowing might cause businesses to delay investing in the economy in case their taxes are raised to pay for the added debt, and creating short-term pain. So, what would it take to actually eliminate the deficit?
Let’s start by considering how much of federal spending is “mandatory” and how much is “discretionary.”
http://reason.com/archives/2013/09/26/the-federal-governments-budget
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