The US Treasury Department announced the final numbers for the nation’s budget deficit for the fiscal year which ended on September 30. It was the second largest in US history at $1.294 trillion. Receipts were $2.162 trillion. Expenditures were $3.456 trillion.
Individual tax receipts were the government’s largest single source of revenue at $899 billion. This figure is unlikely to rise next year as unemployment will probably remain above 9%. Wages have also not risen appreciably as companies continue to have leverage with workers who are concerned for their jobs and the presence of an abundance of potential replacements for those who have work.
It was easy to read the future in the current document. Social Security outlays totaled $754.1 billion for the year. The Health and Human Services Department expenditures, which include Medicare and Medicaid, summed to $854.1 billion. Defense Department expenditures summed $667.1 billion. The odds that Social Security, Medicare, and Medicaid payments can continue at present levels due to the budget deficit and an ever-increasing national debt are very poor. Unless there are sharp increases in taxes which are not regressive or an unexpected acceleration in GDP growth during the next decade, all the entitlement programs will eventually need to be lessened.
Douglas A. McIntyre
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