Tuesday, May 18, 2010

Federal deficit soars in April
The federal deficit expanded over two times as much as estimated

WASHINGTON, DC—The US Treasury Department stated April’s 2010 federal deficit numbers were $82.69 billion, more than twice a projected $40 billion. What’s more this is among only thirteen Aprils in the past 56 that has not shown a surplus and the US debt is 53 percent of GDP—on pace to rise to 140 percent by 2030 (to place that number in perspective, Italy’s debt to GDP is 125 percent, while Greece is 115 percent.

Historically, federal spending has ranged between 18 to 22 percent of the GDP. Beginning with Bush 43, that was increased to nearly 21 percent of GDP and during President Obama’s first eleven months, federal spending increased to 24.7 percent. Making 2009 the highest level of federal spending since World War II.

Per household, federal spending has risen since the recession began as of October of 2008 it was $24,000, under the Obama administration, that number will reach $36,000 per household by 2020. These figures are simply unsettling to say the least. But Congress and the White House seem undaunted by the reality that spending more will not lead to prosperity.

-- Killswitch Politick

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