Record federal deficit of $490 billion in fiscal 2009 budget year: Bush administration, sagging economy
The federal deficit is the difference between what the government spends and what it takes in from taxes and other revenue sources. White House spokeswoman Dana Perino said the stimulus package was necessary, even if it increased the deficit.”We do think the plan was the right one, and it will have an effect,” Dana Perino said. “I remember that back when we were discussing the stimulus package, both parties recognized that the deficit would increase, and that would be the price that we pay in order to help improve the economy,” she said.
- The White House on Monday predicted a record deficit of $490 billion for the 2009 budget year.
- The deficit would amount to roughly 3.5 percent of the nation’s $14 trillion economy.
- The fiscal year begins October 1, 2008.
- President Bush inherited a budget surplus of $128 billion when he took office in 2001.
- $80 billion in war costs.
- The numbers represent about 3 percent of the size of the economy.
- The deficit for 2007 totaled $161.5 billion.
- next year’s budget gap to soar to $482 billio
- This year’s projected budget deficit would be 2.7% of gross GDP.
- Next year, the projected deficit would be 3.3% of GDP.
- The White House cut its GDP growth forecast from 2.7% to 1.6% for 2008.
- The U.S.’s biggest budget deficit to date was $413 billion.
Is it just the economy and the stimulus checks?
It’s not just the wars and the economic slowdown that’s at fault- it’s the entire mentality of government- SPEND SPEND SPEND cause it’s someone else’s money and we can just print more.