The Party Of Fiscal Responsibility Is Set To Add A MASSIVE Amount To The Deficit This Year

The Treasury Department has recently announced that the federal government is set to borrow almost $1 trillion in its first full fiscal year with the Deal Maker in Chief in charge of the budget, almost doubling the amount borrowed in the previous year and the highest amount borrowed in the past six years. The reason? Despite the Treasury blaming the “fiscal outlook,” the Congressional Budget Office blames the new tax law, saying that tax receipts are going to be lower thanks to the massive tax giveaway in the new law.

According to documents released last Wednesday, the U.S. Treasury expects to borrow $955 billion this fiscal year, a substantial increase from the $519 billion the federal government borrowed last year. This increase in borrowing is just another complication in the debate over whether to spend more money on infrastructure, the military, disaster relief and other domestic programs. The deficit, however, was already set to go up even before money is allocated to any of this. Marc Goldwein, senior policy director at the Committee for a Responsible Federal Budget, probably put it best: “We’re addicted to debt.”

Under Ronald Reagan, there was a spike in borrowing as part of an effort to build up the military, something Trump is advocating again, but that’s not where the similarities end. This is the first non-recession time that borrowing as a share of the GDP has jumped by this much since the Reagan era.

Trump might not have mentioned the debt or the continual budget deficits during his State of the Union address, but that doesn’t mean those issues aren’t on the minds of others.

“It is terrible. Those deficits and the debt that keeps rising is a serious problem, not only in the long run, but right now,” said Harvard economist and former Reagan advisor Martin Feldstein.

On top of the $955 billion this year, Trump’s Treasury also forecasts borrowing more than $1 trillion in 2019 and more than $1.1 trillion in 2020. They’re not great figures for any president, but they are terrible for one who came into office after campaigning that he’d reduce the national debt. But realistically, could we really expect anything else?

Featured image via Chung Sung-Jun/Getty Images