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Budget Deficit Hits A New Record For November

From an unfazed Associated Press:

US budget deficit reaches $172B in November

By CHRISTOPHER S. RUGABER | Dec 12, 2012

WASHINGTON (AP) — The U.S. federal government’s budget deficit widened in November compared to October, a sign that the nation is on a path to its fifth straight $1 trillion-plus deficit.

The budget gap rose to $172 billion in November, up from $120 billion in October, the Treasury Department said Wednesday. The November deficit was also 25 percent higher than the same month last year. Last month’s deficit was pushed higher by a calendar quirk that pulled about $33 billion in benefits payments into November from December.

By the way, as the good folks at NewsBusters have pointed out, the AP failed to note that November’s $172 billion dollar deficit is "the highest November shortfall ever (the runner-up: last year’s $137.3 billion)." Which you would think would be newsworthy.

And that is a new record even if you subtract the $33 billion being brought forward from December. (Which would bring the total down to $139B.)

The government finished the 2012 budget year with a deficit of $1.1 trillion. President Barack Obama and Congress are under pressure to curb the deficit as part of a budget deal to prevent tax increases and deep spending cuts from kicking in Jan. 1.

With the economy and hiring improving a bit, the government is receiving more tax receipts. Overall tax revenue rose 10 percent in the first two months of the budget year to $346 billion. But spending has risen faster, up $87 billion or 16 percent…

Which could be why we have a problem. Our spending is more than 60% higher than our revenue.

And note how that fact is never mentioned in the mainstream media’s articles about the fiscal cliff or the debt ceiling. The news media always pretends we have a revenue problem, when we have a spending problem

Obama’s presidency has coincided with four straight $1 trillion-plus deficits, the first in history and a record he had to vigorously defend during his re-election campaign…

What a laugh. He never defended it. In fact, he was never challenged on it.

The government has run annual deficits for more than a decade and hit a record $1.41 trillion in 2009, Obama’s first year in office. That was largely because of the worst recession since the Great Depression. Tax revenue plummeted during the downturn, while the government spent more on stimulus programs…

The recession has now been over for 32 months. (Since June 2009.) That is more than three and a half years. What is the excuse for spending 60% more than what we can afford?

The last time the government ran an annual surplus was in 2001.

Fine. Let’s adopt the 2001 budget. It was written by Bill Clinton and the Democrats. What could be better?

This article was posted by Steve Gilbert on Thursday, December 13th, 2012. Comments are currently closed.

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