United States Deficits A Closer Look

The nation's budget situation is challenging. In February 2009, the CBO projected that the deficit in 2009 will reach more than $1.4 trillion, which includes the deficit impact of the American Recovery and Reinvestment Act. Between 2010 and 2019, cumulative deficits could reach as high as $10 trillion. These deficits are largely a result of federal financial intervention and fiscal stimulus legislation designed to alleviate the credit crunch and to bolster the economy. Current economic conditions have also led to increases in outlays for certain government social programs and declines in revenue collections, leading to further deterioration in the budget balance. This book explores and defines deficits and the appropriate ways to measure them and will also describe how current economic conditions and federal financial interventions have increased the deficit over time.