America’S Trillion-Dollar Budget Hole: A Fiscal Challenge For The Next President

(MENAFN- The Rio Times) The United States has closed its 2024 fiscal year with a staggering $1.8 trillion budget deficit. This figure surpasses the $1.7 trillion deficit recorded in 2023.

The Congressional Budget Office (CBO) released these numbers on Tuesday, October 8th. The U.S. government collected $4.9 trillion in revenue but spent $6.75 trillion during the fiscal year.

This imbalance stems from increased spending on interest payments and social programs. The Biden administration will reveal its official figures later this month.

Deficits of this magnitude usually occur during wars, economic crises, or pandemics. However, the current deficit comes at a time of low unemployment and robust economic growth. This unusual situation raises concerns about the country's fiscal health.
The Presidential Candidates' Economic Plans
Neither Kamala Harris nor Donald Trum , the leading presidential candidates, offer solutions to reduce the deficit. Their proposed economic plans could actually worsen the situation over the next decade.



The Committee for a Responsible Federal Budget (CRFB ) has analyzed the candidates' proposals. Trump's plans, including higher import tariffs and extended tax cuts, could increase the deficit by $7.5 trillion.

Harris's proposals, such as tax hikes for the wealthy and expanded social programs, might add $3.5 trillion to the deficit. Both candidates have pledged to avoid cuts to social programs and Medicare.

These areas are considered crucial in the debate about reducing the fiscal deficit. Their reluctance to address these issues complicates the path to fiscal stability.
Economic Concerns
The fiscal policies proposed by both candidates have worried economists and investors. In August, three of the country's top fund managers expressed their concerns.

They view the upcoming election as a choice between the "lesser of two evils." André Jakurski, a prominent investor, likened the election to choosing between a "known drunk" (Harris) and an "anonymous alcoholic" (Trump).

This colorful analogy highlights the pessimism surrounding the candidates' economic policies. As the election approaches in early November, the United States faces a significant fiscal challenge.

The next president will need to address the growing deficit while balancing economic growth and social needs. This task will require careful planning and potentially difficult decisions to ensure America's long-term financial stability.

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