Are There Any Fiscal Conservatives Left?

Last week, the US Treasury Department released its Monthly Treasury Statement.  Our federal government has spent $867 billion more than it has taken in during fiscal 2019 (October 2018 – September 2019 is the fiscal year).  That amount is almost $100 billion more than the comparable period in fiscal 2018.  If you want to learn more, follow this link.

Bear with me while I do a little math.   Gross Domestic Product (GDP) is released quarterly on a calendar basis.  The latest release was for calendar Q2.  Seasonally adjusted annual GDP came in at $21.338 trillion for the quarter ended June 30, 2019.  Seasonally adjusted annual GDP for Q2 2018 was $20.51 trillion.  If I subtract 2018 from 2019, GDP grew $828 billion over that time period.  GDP data can be seen here.

Over that same time period (July 1, 2018 to June 30, 2019), the government ran a deficit of $919.0 billion according to the data from the US Treasury.  So the government (meaning us, the citizens and taxpayers) borrowed $919 billion to grow the economy $828 billion?  I know some of the money the government borrows is invested in long term assets and some is saved by recipients of government funds.  I also know my analysis is very simplistic, but does anyone else see a problem here?  We are in a good economy.  What will the deficit look like when the economy turns? 

Fiscal conservatism is dead.  The burden of our current consumption will fall on future generations.  They will pay for our sins.   Unfortunately, neither political party appears to have a reasonable conversation about our spending. 

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