U.S. government deficit down 17 percent from same period a year ago

[BeckyDem]

Dec 10, 2021 4:36 PM EST

WASHINGTON (AP) — The U.S. budget deficit totaled $356.4 billion in the first two months of the budget year, down 17% from the same period a year ago thanks to a sharp jump in government revenues that offset a smaller increase in spending.

In its monthly budget report, the Treasury Department said Friday that the government’s deficit in October and November was $72.9 billion below the deficit in the same two months last year. The government’s budget year starts on Oct. 1.

The improvement was due to government revenues rising at a faster pace than spending over the past two months.

For the October-November period, tax revenues totaled $565.1 billion, 23.6% above revenues in the same period last year and a record for the first two months of the budget year.

https://www.pbs.org/newshour/economy/u-s-government-deficit-down-17-from-same-period-a-year-ago


( Funny how certain pundits/talking heads never mention that. )

[BeckyDem]

2. Great point!

[Bayard]

3. Yeah, but--INFLATION!

[Igel]

5. In fact, that's a point.

Debts are deflated in inflationary times. The government budget is debt in waiting. Moreover, much of the spending--not all--is postponed.

Under inflation well, incomes are inflated. Add in increased minimum wage and knock-effects. If the bottom wage earner made $11/hr and the supervisor made $14, then when the bottom wage earner's take is increased to $15/hr that second number, $14/hr, had better increase.

Given a progressive tax code that's not indexed for inflation, you'd expect inflated wages to produce more dollar-denominated income.

What matters is how that's adjusted for inflation.


Calculating that isn't my job. Nor is it my assertion.

[LoisB]

4. Yeah, you won't hear about this on mainstream media.