I’m seeing news stories about how the US deficit was reduced by half down to $1.4 Trillion within the last year. How is this possible to move this fast? Does the current government have anything to do with it or is it all external factors?
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The deficit is just how much you spend vs how much you take in *for a single year.* It’s really not hard to make that change dramatically.
I mean, think about it as an individual. You can easily have a year without any big emergency purchases and end up building a good bit of savings. But when it’s time for you to buy a new car, buy a house, or do some major repairs on your current house your deficit just shot way up.
For the US specifically, we are comparing the deficit during a global pandemic which brought almost the entire world’s economy to a halt, hugely reducing income. While requiring a massive amount of government support, massively increases expenses.
To a year where thing’s have *sorta* gone back to normal, so tax revenue is way up and expenses are way down.
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