It's the spending!
From First Trust's great new economics blog :
"Yesterday the Treasury Department released federal budget data through April, and they weren’t pretty. The deficit in April was $82.7 billion, the worst April on record and almost four times larger than a year ago. Normally, tax revenues in the month of April create surplus, but spending has been so out of control over the past couple years, that April has been in deficit for the past two years. Not since 1983 has this happened. Most journalists and pundits were quick to cite the drop in revenues as the cause for the large deficit. But the problem isn’t revenues, it’s spending. Federal outlays in April were the third highest month on record."
Thanks, Tom.
It's times like these that I get to feel like I know something about economics.
"Hey, that's really bad and we're in deep trouble." You get the same quote from the guy on the street that you should hear from a Harvard Professor on this.
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Washington doesn't seem to get it though.
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