The U.S. Treasury has released year-end data that reflects troubling news for the United States circa 2023. The deficit for 2023 is coming in at $1.7 trillion. That’s a $320 billion increase from the deficit in 2022. What does this mean for the everyday American? It means the experts claiming we’re going to hit a depression may not be that far off the mark.
The U.S. federal budget deficit effectively doubled in the 2023 fiscal year. Here's why. https://t.co/4Aw825cAVc
— The New York Times (@nytimes) October 21, 2023
With the Gross Domestic Product jumping from 5.4% to 6.3% in the last year, the U.S. isn’t just slated to fall into a recession — we’re already in one.
Short analysis based on 10 interesting charts showing that the US economy is on a brink of a recession.
1/ Through September, 516 companies went bankrupt in the US. This is the most since 2010, excluding the pandemic year of 2020 when 518 bankruptcy fillings were registered. pic.twitter.com/JuUfLvH0La
— Global Markets Investor (@GlobalMktObserv) October 24, 2023
Not everyone is surprised. After all, many predicted this would happen. They promised us.
Last year, on October 17th, Bloomberg said that there was 100% probability of a US recession in the coming year. pic.twitter.com/k3S0RasmQY
— unusual_whales (@unusual_whales) October 19, 2023
So, if we’re in a recession, why isn’t anyone talking about it? Moreover, why is the mainstream adamantly denying it?
"The US economy continues to be extremely robust," according to FS Investments chief market strategist @TroyGayeski. However, he believes the probability of a recession is "around 60% over the next 12-18 months."@Nasdaq pic.twitter.com/zAgFkajywZ
— Yahoo Finance (@YahooFinance) October 23, 2023
If we’re in a recession, why doesn’t everyone know? The answer to that question is a bit simpler, and it’s highlighted by the data. In plain terms, the Biden Administration is masking some of the effects of the recession with government spending.
Outside of debt increases, the U.S. is facing the harshest GDP growth since the Great Depression.
A 1% drop in GDP is a recession. In 1929 we had a 15% drop in GDP and called it a depression. This week we had a 33% drop in GDP. We need a new word.
— Deacon Blues (@DeaconBlues0) August 1, 2020
In a healthy economic climate, revenues should not decline when the government is dishing out tax hikes. But that’s what’s happening. In fiscal year 2023, the government raked in $4.44 trillion in revenue. That’s a 9/3% decrease from 2022.
The White House Office of Management and Budget report notes:
“Relative to 2022, individual income tax receipts fell by $456 billion due largely to lower capital gains realizations, increased employee retention credit claims, and delayed tax payment deadlines due to natural disasters.”
That drop, combined with the “$106 billion lower deposits in earnings by the Federal Reserve due to higher interest rates,” is primarily to blame for the reduced revenue.
America needs its government to stop sweeping the truth under the rug: Our economy is suffering and the Biden Administration is not repairing it. Last summer, the Biden Admin was “proposing raising revenue by more than $4 trillion primarily from new taxes on U.S. businesses and individuals, exceeding the magnitude of his proposed tax hikes during the 2020 campaign ($3.7 trillion on a gross basis),” according to the Tax Foundation.
That’s not what happened. Increasing taxes for those in higher brackets isn’t a reliable way to collect $1.7 trillion in extra taxes on an annual basis — not in an economy that fluctuates.
Furthermore, the magnitude of the deficit is beyond what any tax measure could ever remedy. At $33.6 trillion, if receipts and spending stay on par with where they are now, that figure will climb by $1.8 trillion every year.
Point blank, we no longer need to argue over how a boost from the Federal Reserve or avoiding a rise in the cost of debt could have mitigated the problem. It wouldn’t have. America would still be looking at a $1.3+ trillion deficit.
More government spending has not led to more growth or better wages for American workers. Government spending is actually what got America into this mess. It won’t get us out of it.
The moral of the story is: You don’t get something for nothing. Now, we’re faced with a dismal economic outlook for the year ahead as the average American household struggles to make ends meet.
#Powell blamed today's #inflation on the #pandemic. The pandemic didn't cause inflation, the #Fed and the Federal Government did. Both made the inflation problem worse during the pandemic by running huge budget deficits and printing a shitload of money to finance stimulus checks.
— Peter Schiff (@PeterSchiff) October 19, 2023
As the deficit grows, wages won’t be commensurate and debt will soar. The result? More taxes and more inflation that our nation’s bottom line can’t withstand. At $1.7 trillion, the American deficit nearly doubled in FY 2023. The future of the U.S. dollar will be at risk if this deficit isn’t wiped out, and along with it could go the American dream.