Where did the mammoth US budget deficits come from?
By Peter Grier | Christian Science Monitor – 18 hrs ago
Let's go back about a decade, when budget surpluses were predicted for the foreseeable future. Somehow, the math went terribly wrong, by trillions of dollars. Here's an accounting of what happened.
What’s the cause of the federal government’s huge budget deficits? That’s a question that is harder to answer in the particular than you might think. The general problem is obvious: Uncle Sam has been spending more money than he takes in. The specific reasons as to why this state of affairs exists are a mix of human decisions, economic circumstance, and the cumulative effect of time.
Context is important here. So let’s start with 2001. That year, the Congressional Budget Office looked out over the decade to come and saw ahead nothing but blue skies and black ink. It predicted that between 2001 and 2011 the US would run budget surpluses totaling $5.6 trillion.
That didn’t happen. Instead, the US racked up $6.1 trillion in deficits over that period. CBO’s prediction was a whopping $11.7 trillion off the mark. How did things go so wrong?
It's interesting how people that tow party lines can read this and see completely different things. Most notably, they see ammunition to support their claim that the other side is to blame. Nothing changes, does it? Read and see what you think. I don't want to effect the outcome of anyone's opinion with my own. I do think the problem is blatantly obvious though.