Veronique de Rugy Jul 26, 2019
This year, the deficit will end up being the fourth highest in U.S. history. It's gigantic, and it will hit a little over $1 trillion by the end of the fiscal year. It's also larger than previously projected. And it's growing fast, at a time when the United States is not in a recession -- unlike the economies that delivered the three previous highest deficits.
These are all facts that should help members of Congress and the administration recognize that it's probably time to reduce spending. But they fail to make that realization.
White House and congressional negotiators reached accord on a two-year budget on Monday. That deal would lift discretionary spending caps by $320 billion over the next two years. Just a reminder, Congress put these caps in place as the result of the 2011 debt-ceiling debate. At the time, the debt had doubled since 2008, and annual deficits were above $1 trillion because of the recession and a silly, expansive stimulus bill. President Barack Obama was then in power, and Republicans in Congress were allegedly horrified by the level of red ink. As such, they were not going to agree to increase Uncle Sam's borrowing authority without some commitment to fiscal responsibility -- hence the spending caps.
That was then; this is now..........To Read More.....