What Is the Current Deficit?:
What Caused These Massive Budget Deficits?:
First, the $787 billion economic stimulus package was launched by newly-elected President Obama in March 2009. It cut taxes, extended unemployment benefits, and funded public works projects to create jobs directly. This expansionary fiscal policy was needed to kick-start the economy out of recession, which it did by the second quarter of 2009.
The recession -- the second reason for these deficits -- reduced Federal income. As the economy tanked, so did tax revenues. Government income fell from its all-time record of $2.568 trillion in FY 2007 to $2.1 trillion in FY 2009. It still hadn't recovered by FY 2012, reaching only $2.45 trillion.
The third reason has more to do with the attacks on 9/11 than the recession. The War on Terror drove military spending to a pre-recession record of $671 billion in FY 2007. Despite declines in revenue from the recession, defense and security-related spending increased as follows:
- FY 2008 - $686 billion.
- FY 2009 - $782 billion.
- FY 2010 - $846 billion.
- FY 2011 - $838 billion.
- FY 2012 - $909 billion.
- FY 2013 - $780.7 billion.
- FY 2014 - $745.2 billion.
Why the Government Plans to Overspend:
- The more the government spends, the more it stimulates the economy.
- There are many other countries, like China, willing to lend us the money.
- Politicians get elected for saving jobs. They lose elections for allowing unemployment to continue or raising taxes.
Why You Should Be Concerned:
What the Government Is Doing About the Deficit:
U.S. Federal Budget Deficits by Year Since 1960:
- FY 2014 - $744 billion.
- FY 2013 - $973 billion.
- FY 2012 - $1.087 trillion.
- FY 2011 - $1.299 trillion.
- FY 2010 - $1.294 trillion.
- FY 2009 - $1.413 trillion.
- FY 2008 - $459 billion.
- FY 2007 - $161 billion.
- FY 2006 - $248 billion.
- FY 2005 - $318 billion.
- FY 2004 - $413 billion.
- FY 2003 - $378 billion.
- FY 2002 - $158 billion.
- FY 2001 - $128 billion surplus.
- FY 2000 - $236 billion surplus.
- FY 1999 - $126 billion surplus.
- FY 1998 - $69 billion surplus.
- FY 1997 - $22 billion.
- FY 1996 - $107 billion.
- FY 1995 - $164 billion.
- FY 1994 - $203 billion.
- FY 1993 - $255 billion.
- FY 1992 - $290 billion.
- FY 1991 - $269 billion.
- FY 1990 - $221 billion.
- FY 1989 - $153 billion.
- FY 1988 - $155 billion.
- FY 1987 - $150 billion.
- FY 1986 - $221 billion.
- FY 1985 - $212 billion.
- FY 1984 - $185 billion.
- FY 1983 - $208 billion.
- FY 1982 - $128 billion.
- FY 1981 - $79 billion.
- FY 1980 - $74 billion.
- FY 1979 - $41 billion.
- FY 1978 - $59 billion.
- FY 1977 - $54 billion.
- FY 1976 - $74 billion.
- FY 1975 - $53 billion.
- FY 1974 - $6 billion.
- FY 1973 - $15 billion.
- FY 1972 - $23 billion.
- FY 1971 - $23 billion.
- FY 1970 - $3 billion.
- FY 1969 - $3 billion surplus.
- FY 1968 - $25 billion.
- FY 1967 - $9 billion.
- FY 1966 - $4 billion.
- FY 1965 - $1 billion.
- FY 1964 - $6 billion.
- FY 1963 - $5 billion.
- FY 1962 - $7 billion.
- FY 1961 - $3 billion.
- FY 1960 - $.3 billion surplus.
- FY 1789-FY 1959 - $232 billion net deficit.
Understand the Current Federal Budget
- Economic Report of the President
- Current Federal Budget Breakdown
- Revenue and Taxes
- Spending
- Mandatory
- Discretionary
- Defense
- Current Deficit




