The United States borrowed $82 billion in December, making the total for fiscal year 2023 so far $418 billion according to the latest Monthly Budget Review from the Congressional Budget Office. December also closes out calendar year 2022 with $1.4 trillion in deficits.
The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
In calendar year 2022, we borrowed a total of $1.4 trillion, or $10,808 for every American household, nearly $4 billion per day, and more than we even spent on Social Security, the largest federal program. This is not a pretty picture no matter how you look at it.
There are times to borrow – like during a pandemic or major recession – and there are times where we should ratchet down the borrowing, like now when the economy is strong and inflation is hot.
We need a fresh start in 2023 for how we budget, spend, and borrow. Members of Congress who are serious about the fiscal health of the nation should commit to passing a budget, not engaging in new borrowing, and coming up with a reasonable package of savings to help bring our debt down.
Members of Congress who do not follow a sensible fiscal plan should explain why they believe continuing to borrow during a time of such high debt levels and economic expansion serves the nation’s interests or if they are merely focusing on their own political interests at the expense of the nation’s fiscal strength.Committee for a Responsible Federal Budget
As I have said more than once in posts, whenever you cite something from Maya MacGuineas, or someone from the Committee for a Responsible Federal Budget, those guys supported the Inflation Reduction Act which increased spending in the first five years of the ten year budget window period. What chance is there that the out year savings (deficit reduction) will be achieved?
Happy to wager on it, with respect to the provisions in that legislation. The impact on the deficit, in terms of reduction, will be LESS THAN ZERO – the Inflation Reduction Act will increase the federal deficit every year from 2022 through 2031.
Deficit Reduction – Year by Year – Generous Study by the University of Pennsylvania:
No one will ever know, because Congress won’t track it. Much like the Patient Protection and Affordable Care Act of 2010 (health reform, Obamacare), our president asserted that it would not add “one thin dime” to the annual deficit. However, many of the revenue raising – expense offset provisions were dropped before they were implemented, or soon thereafter, such as:
– The CLASS Act,
– The Individual Mandate, and
– The Cadillac Tax.
Dick, stop wasting (y)our time. There is no budget discipline in Congress – it hasn’t existed for over 20 years – not since the head to head battles between President Clinton and Speaker Gingrich in the last term of the Clinton Administration.
Our debt problem cannot be fixed by increasing taxes. It is a spending problem and our lazy politicians will not do the hard work of a balanced budget. They will not say NO, to the citizens or the corporations. Until this changes things will just get more expensive for everyone, as inflation is caused by the government borrowing money from the FED.
To make a meaningful reduction in Federal spending, Congress needs to target the main drivers of deficit spending, the so-called “entitlements” Social Security and Medica etc programs
This is not rocket science and so why hasn’t this been done? Because current beneficiaries will claim bloody murder!
So there, that’s why it hasn’t been done. And it sure as hell won’t be done.
Social Security does not affect deficit spending and neither does Part A of Medicare. Parts B and D yes.
Phil – All items of the federal budget need to be frozen for 5 years. No new spending unless it is paid for with new revenue, or something else in the budget will need to be cut to pay for it. The US spends more on defense than the next 8 countries combined. Why has the defense budget grown 50% more than inflation since 1995. Time to close many of the overseas bases. As a USAF retiree, I believe you could cut and should cut the defense budget by 25% and we would be just as safe, way to much waste in the DoD budget.
As for Social Security and Medicare – These are programs that every worker paid into during their working years and these promises should be kept. You could adjust COLAs or limit Medicare payments to Doctors and Hospitals, but it is not going to save anything close to 1.4 Trillion dollars. It has to be budget wide freeze.
To be fair, I think many of those who think we should spend more also think we should tax more. I know I do.
Well, we need to raise taxes, but before we raise them and then add new spending we should use the new revenue to pay for the obligations already created and reduce the deficit. And people should know that means higher taxes on all Americans, it can’t be done only on the 1%.
Can’t be done on the bottom 50 percent. As I recall, a lot of the top 10 percent actually agree they should pay more. I know would, and I’m barely in the top 50 percent.
SD – You know you can send in more to the Federal Government anytime you like, lol. Why would you want to give the political elite running this bankrupt country, more money to waste. I say send them less, let them manage the budget like a responsible household and live with the revenue that the government has, no more added debt.