By Lillian Tweten
The federal government’s deficit for fiscal year 2023 is set to double thanks largely to large amounts of government spending greenlit by the Biden administration, according to budget experts surveyed by The Washington Post.
The deficit will most likely reach $2 trillion, doubling from 2022’s $1 trillion deficit, because of President Joe Biden’s increased government spending on the Inflation Reduction Act, as well as higher Social Security payments due to elevated inflation, according to the Post. This deficit jump is one of the largest in a time outside of major crises such as wars and recessions, and signals a further increase in interest rates and more economic difficulties in the near future.
“A debt growing much faster than the economy will drive up interest rates, reduce economic investment, and over time make interest payments the largest federal expenditure — risking a federal debt crisis,” Brian Riedl, an economist at the Manhattan Institute, said, according to the Post.
— Brian Riedl 🧀 🇺🇦 (@Brian_Riedl) September 4, 2023
The recent deficit jump could potentially impact Biden’s hopes for re-election in 2024, as voters respond to economic difficulties. Biden has touted his goal to reduce the deficit in his “Bidenomics” plan, and criticized former President Trump for his response to the deficit during his time in office, according to a White House press release.
The government has spent $1.61 trillion more than it brought in since October 2022, marking a 122% deficit increase, according to the U.S. Department of Treasury. If the deficit continues to grow at this pace, Americans will earn an estimated $9,000 less per year in 2049 — a 10% decrease — compared to declining debt, according to the Committee for a Responsible Federal Budget.
“To see this in an economy with low unemployment is truly stunning. There’s never been anything like it,” Jason Furman, former economic advisor to the Obama administration, said, according to the Post. “A good and strong economy, with no new emergency spending — and yet a deficit like this. The fact that it is so big in one year makes you think it must be some weird freakish thing going on.”
The Treasury Department did not immediately respond to the Daily Caller News Foundation’s request for comment.