US Deficit Shrinks To $431 Billion

[Economy 52,834]

http://www.wsj.com/articles/u-s-annual-budget-deficit-remains-near-7-year-low-in-june-1436810691

 

An improved economy with rising revenue has brought the deficit over the last 12 monthsd down to $431 Billion a 7 year low

 

Thats less than 3% of GDP

[socotra 3,357]

obama stays slayin

[JusKeepBreathin 19,311]

What's next?

 

[Pablo 8,568]

I'm glad to see this because it always seems that they always spend more money then they have. Of course we will never see the number get less than the trillions but it's progress :) 

[Economy 52,834]

obama stays slayin

well he better have reduced the deficit. The economy crash was 7 years ago no sense running $1.5 trillion deficits anymore with emergency stimulus

 

also a deficit of just under 3% of GDP is not good. Its just not terrible. A 3% deficit is in the upper limits of whats considered safe and sustainable long term

 

if ur gonna run huge deficits when the economy is bad and 3% is as good as it gets when things are better, over the long term ur finances are still deteriorating.

[Woolfsmck 2,763]

And next thing you know, Trump gets elected....8-/

[socotra 3,357]

And next thing you know, Trump gets elected....8-/

and then we're right back where we started lol

[Luc 4,776]

well he better have reduced the deficit. The economy crash was 7 years ago no sense running $1.5 trillion deficits anymore with emergency stimulus

 

also a deficit of just under 3% of GDP is not good. Its just not terrible. A 3% deficit is in the upper limits of whats considered safe and sustainable long term

 

if ur gonna run huge deficits when the economy is bad and 3% is as good as it gets when things are better, over the long term ur finances are still deteriorating.

A 1-2% deficit is very sustainable  3% is okay. I honestly don't know if a surplus is actually better than a deficit, because all the extra money that goes to the government the people will lend, so basically it's a choice between private and public debt. On the other hand the US is doing very well and according to Keynes now is the time to raise taxes and cut spending (right?). 

[Economy 52,834]

A 1-2% deficit is very sustainable  3% is okay. I honestly don't know if a surplus is actually better than a deficit, because all the extra money that goes to the government the people will lend, so basically it's a choice between private and public debt. On the other hand the US is doing very well and according to Keynes now is the time to raise taxes and cut spending (right?). 

yeah 3% is ok. But the issue is the US doesnt usually run deficits of 2% or 3%. It runs them only when things are better but most of the time runs bigger ones

 

so over the long term average their deficits are higher than 3%

 

Also nowadays with demographics the new normal is slower growth so i think the 3% being the sustainable limit might be outdated

 

most developed economies now dont have the capacity to grow more than 2% long term so a deficit of 3% for a long time is basically going in the direction of a debt of 150% of GDP over the long term which is dangerously high

[HighwayGuy 1,498]

This is a perfect example of how investing in the economy and not austerity is the way to shrink the deficit 

Here in the UK the right wing idea that we should not invest and instead cut back on public spending to reduce the deficit is not working and instead making things much worse 

[Economy 52,834]

This is a perfect example of how investing in the economy and not austerity is the way to shrink the deficit 

Here in the UK the right wing idea that we should not invest and instead cut back on public spending to reduce the deficit is not working and instead making things much worse 

Depends on how u do it. If u raise taxes to invest it may neutralize stimulative benefits

 

also u gitta be careful that what u spend on really does stimulate economy and isnt just throwing money around

 

Also this depends on circumstances too. In the case of the US they had fiscal room to run really bug deficits (not anymore) but in the case of much of Europe they did not so painful austerity was really the only way to go unfortunately   

[Luc 4,776]

This is a perfect example of how investing in the economy and not austerity is the way to shrink the deficit 

Here in the UK the right wing idea that we should not invest and instead cut back on public spending to reduce the deficit is not working and instead making things much worse 

The UK probably still has a bigger deficit than the US though. UK conservatives like to claim that they balanced the budget, but the deficit is far from balanced. If Labour were in the government, the deficit would probably be just as big, but the cuts would be made in higher incomes rather than lower.