economy
We Can’t Live Beyond Our Means Forever
The federal government posted a $432.3 billion deficit in July, the biggest since March 2021, when then-President Joe Biden’s COVID-19 stimulus checks sent deficits, and then inflation, soaring. President Donald Trump does not have a global pandemic or a declared war to excuse this level of borrowing, and with our population aging, the deficit picture is inevitably going to get worse.
TL;DR
- The federal government posted a $432.3 billion deficit in July, the largest since March 2021.
- The government has borrowed $1.8 trillion so far this fiscal year.
- Top spending items in July were Medicare, Social Security, and net interest on the national debt.
- For the fiscal year to date, Social Security is the largest expense, followed by Medicare and net interest.
- Refunds from tariffs added $33 billion to the July deficit, a $60 billion swing.
- For every $1 spent this fiscal year, roughly 29 cents has been added to the national debt.
- The Social Security Trust Fund is projected to run out of special-issue Treasury bonds in 2032.
- Bipartisan action was taken in 1977 and 1983 to address Social Security's solvency.
- Congress needs to address spending on Medicare and Medicaid, which are rapidly growing budget items.