What the United States Needs Is More Debt, Er, Credit
If you hear people adding "record deficits" to the account of the current economic crisis, are they just being hyperbolic? Nope!
The federal budget deficit hit a new record in the just-completed 2008 budget year under the latest estimates from the Congressional Budget Office.
The record $438 billion shortfall for the budget year that ended last week is up from $162 billion posted last year. The previous record of $413 billion was posted in 2004.
CBO said Tuesday that with the economy in a slump, revenues dropped by almost 2 percent. Corporate income receipts dropped by $65 billion, or nearly 18 percent. At the same time, individual income tax revenues declined by 1.6 percent.
The deficit is virtually certain to balloon even higher next year as the government sorts out the financial crisis and taps a $700 billion Treasury fund to buy toxic mortgage-related securities.
But don't worry about it. Both or either McCain or Obama are going to slash spending. And start lots of expensive new programs. And start a few new wars. And lower taxes on most of you. And supply health care and fresh energy solutions to all. And buy everything bad, and sell everything good. And do whatever is necessary to delay by one more day any bad consequences from decades of spending beyond the government's means.