2024's Deficit Is Already on Track to Be the Worst Since Covid

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2024's Deficit Is Already on Track to Be the Worst Since Covid

Ryan McMaken  |  2023-12-25

Weakness in the US economy continues to hide behind surging debt levels and government spending. As noted last month by Daniel LaCalle:

[A] large part of the growth in GDP came from bloated government spending financed with more debt and inventory revaluation, adding 0.8 and 1.4 percentage points to GDP growth. ...

The increase in gross domestic product between the third quarter of 2022 and the same period of 2023 was a mere $414.3 billion, according to the Bureau of Economic Analysis, while the increase in public debt was $1.3 trillion ($32.3 to $33.6 trillion, according to the Treasury).

The United States is now in the worst year of growth, excluding public debt accumulation since the thirties.

This trend is continuing at least into the first quarter of the new fiscal year, as it is apparent that total public debt isn't slowing down.  .  .

https://mises.org/wire/2024s-deficit-already-track-be-worst-covid

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(cont.)

According to the latest monthly statement from the Treasury Department, the total budget deficit for the 2024 fiscal year (which began October 1) has already risen above $380 billion. The new total, which includes the months of October and November, puts the US on track for a total annual deficit of more than $2 trillion by the end of the fiscal year. That would be an increase of more than 25 percent over 2023 fiscal year, which was itself a 23 percent increase over 2022.

A 2024 annual deficit of $2 trillion would make 2024's deficit the third-largest deficit ever, behind only 2020 and 2021 during which federal spending in covid-related social benefits were seemingly unlimited.



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[Hoodat]

The money quote:

The increase in gross domestic product between the third quarter of 2022 and the same period of 2023 was a mere $414.3 billion, according to the Bureau of Economic Analysis, while the increase in public debt was $1.3 trillion ($32.3 to $33.6 trillion, according to the Treasury).

Essentially, every single dollar of GDP growth over that one quarter pales in comparison to the amount of new money issued by the Treasury and handed over to government.  We will not survive as a nation if this keeps up.  And by far the two worst Presidents in US history for exacerbating this problem are the same two candidates projected for the November ballot.