Debate continues in Washington about more multi-trillion-dollar spending plans. But we just got an ugly reminder that the federal spending we’ve already passed is bankrupting the country.
The nonpartisan Congressional Budget Office just released its latest projections, and they offer a dire warning indeed. The government analysts expect the annual federal budget deficit—the gap between spending and revenue—to hit an eye-popping $3 trillion in fiscal year 2021. That’s roughly $20,935 in new debt per federal taxpayer, to be added in just one year!
This will be just slightly below the record-breaking deficit the government ran in fiscal year 2020. But nonetheless, this astounding $3 trillion sum is nearly 3 times higher than the already-high budget deficit for 2019. Relative to the size of the economy, it will be the second-largest budget deficit since 1945—which was incurred during World War II.