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October 01, 2020, 02:46:06 pm
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  US Federal Debt to Exceed Annual GDP For the First Time Since World War II
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Author Topic: US Federal Debt to Exceed Annual GDP For the First Time Since World War II  (Read 1020 times)
Virginia Yellow Dog
Frodo
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« on: September 02, 2020, 06:42:11 pm »

A harrowing US economy milestone: Federal budget deficit projected to hit a record $3.3T

Quote
The federal budget deficit is projected to hit a record $3.3 trillion as huge government expenditures to fight the coronavirus and to prop up the economy have added more than $2 trillion to the federal ledger, the Congressional Budget Office said Wednesday.

The spike in the deficit means that federal debt will exceed annual gross domestic product next year a milestone that would put the U.S. where it was in the aftermath of World War II, when accumulated debt exceeded the size of the economy.

The $3.3 trillion figure is more than triple the 2019 shortfall and more than double the levels experienced after the market meltdown and Great Recession of 2008-09. Government spending, fueled by four coronavirus response measures, would register at $6.6 trillion, $2 trillion-plus more than 2019.
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TML
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« Reply #1 on: September 03, 2020, 10:06:26 am »

This is why it is long past time to aggressively impose progressive taxation on the top 1%.
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President Johnson
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« Reply #2 on: September 03, 2020, 02:44:31 pm »

This is why it is long past time to aggressively impose progressive taxation on the top 1%.

I agree they should be paying a lot more. Income tax for individuals making more than 200,000 a year should actually be around 45-50%, but that alone won't fix the entire problem. A wealth tax as proposed by some sounds good in theory, but has never really worked in pratice. Tax evasion, legally and illegally, remain a problem as well, which is why loopholes should be closed (in an ideal world, the US and Europe would together figure out how to avoid multinational companies not paying a nickel in taxes on either side of the Atlantic despite making billions in profits). Another uncomfortable truth is that spending is too high, especially the military budget should be cut. But I'm sure there are a number of other programs that are too expensive as well.

My biggest concern is that the pandemic leads to another debt crisis a few years down the road, since multiple countries are running record deficits at this point. Too many politicians are avoiding this issue because doing something is often not all too popular, but one day it will come back to haunt us.
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parochial boy
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« Reply #3 on: September 03, 2020, 03:35:02 pm »
« Edited: September 03, 2020, 03:56:28 pm by parochial boy »

You know, aside from being symbolic, it's not actually very meaningful in reality - as debt and GDP are measuring two different sorts of things (like for a start GDP ≠ the value of a nation's assets).

Trying to worry about reducing the deficit at this particular point in time would be suicidal; especially when you are the US and you have historically low interest rates helping you along.
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Alcibiades
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« Reply #4 on: September 03, 2020, 04:23:12 pm »

You know, aside from being symbolic, it's not actually very meaningful in reality - as debt and GDP are measuring two different sorts of things (like for a start GDP ≠ the value of a nation's assets).

Trying to worry about reducing the deficit at this particular point in time would be suicidal; especially when you are the US and you have historically low interest rates helping you along.

Exactly. I would not worry about debt at this point in time. Indeed it is highly preferable to be running a substantial deficit.
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True Federalist (진정한 연방 주의자)
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« Reply #5 on: September 03, 2020, 10:56:58 pm »

You know, aside from being symbolic, it's not actually very meaningful in reality - as debt and GDP are measuring two different sorts of things (like for a start GDP ≠ the value of a nation's assets).

Trying to worry about reducing the deficit at this particular point in time would be suicidal; especially when you are the US and you have historically low interest rates helping you along.

Exactly. I would not worry about debt at this point in time. Indeed it is highly preferable to be running a substantial deficit.

It's something to keep in mind. Governments seldom have a problem running a deficit when the situation calls for it, they just rarely rebuild the reserves by running surpluses when times are good. The 2017 tax cuts would have been much better if they'd been implemented now instead of three years ago.
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EastOfEden
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« Reply #6 on: September 05, 2020, 12:06:02 pm »

And not a word from Republicans about it.


Until Biden gets into office.
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MR. KAYNE WEST
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« Reply #7 on: September 08, 2020, 10:57:02 am »

Obama introduced a Federal Jobs guarentee, which should of been enacted instead of searching for Green Jobs in 2009, of course, thats why he lost the House and the Senate in subsequent elections, but the Rs didn't do anything but pass massive tax cuts for the wealthy.

TSA was a pathway to that Jobs guarentee, but the Obama adminstration didn't want to Federalize it.  We need a jobs guarentee where private citizens can work for Congressmen and get job experience, that needs to be enacted. Like Bernie says, or people on Social Programs on unemployment or SSI are gonna stay the same
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AGA
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« Reply #8 on: September 09, 2020, 06:52:54 pm »

Good thing we ran up a $1 trillion+ deficit in the longest economic expansion in history.
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Corbynite
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« Reply #9 on: September 12, 2020, 11:09:34 pm »

Good thing we ran up a $1 trillion+ deficit in the longest economic expansion in history.

Good thing we spent $10 trillion or so on defending American freedom from teenagers in the desert 6000 miles away.
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Sir Mohamed
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« Reply #10 on: September 14, 2020, 10:22:20 am »

Good thing we ran up a $1 trillion+ deficit in the longest economic expansion in history.

Good thing we spent $10 trillion or so on defending American freedom from teenagers in the desert 6000 miles away.

The things is, you're both right.
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Corbynite
CraneHusband
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« Reply #11 on: September 14, 2020, 12:11:37 pm »

Good thing we ran up a $1 trillion+ deficit in the longest economic expansion in history.

Good thing we spent $10 trillion or so on defending American freedom from teenagers in the desert 6000 miles away.

The things is, you're both right.

I wasn't disagreeing with them, just adding on to the point.
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John Dule
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« Reply #12 on: September 17, 2020, 04:23:04 am »

Wow, sounds like an ideal time to implement Medicare for All and implement a jobs guarantee. What could go wrong?
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MasterJedi
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« Reply #13 on: September 17, 2020, 09:09:50 am »

Time for the Republican Party to step up, for every $1 donated another $1 goes to the deficit!
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