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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Deficit is how much more we spend above what we bring in. If we get 1 trillion in taxes and spend 1.5 trillion, the deficit is 500 billion.
Between covid spending and tax cuts for billionaires, the deficit exploded a few years ago.
This year, the deficit decreased by the largest amount in history as revenue streams are up and a bunch of spending is cut, as well as raising corporate tax rates above 0% in most scenarios.
The deficit is funded in many ways.
This year, that ‘overspend’ that went into national credit decreased by the largest amount. We went from…I think overspending 1.5 trillion under mps largest deficit to just over 300 billion this year, the largest decrease in history.
Editing to add: down FROM 1.5 trillion for annual deficit growth. A stated goal of the inflation reduction act was deficit reduction so current govt definitely responsibile.
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