National deficit coming down but not fast enough
News this week that the deficit for the most recent fiscal year won’t top $1 trillion was met with mixed results in Washington, D.C. and elsewhere.
According to the non-partisan Congressional Budget Office, the red ink totalled $845 billion, the first year in several that it wasn’t more than $1 trillion.
Those were years that Great Recession stimulus spending drove deficits skyward. Indeed, since the onset of the recession, the national debt has increased more than $5 trillion, monies that must be repaid with interest.
With an economy that by all accounts is steadily improving, one would reasonably expect that less red ink will be spilled inside the Beltway. And that’s what we see happening. That said, President Barack Obama and the Democrats and the Republicans on the other side of the aisle must be willing to compromise on fiscal policy – specifically taxes and spending – if the recovery is to continue.
Regrettably, we haven’t seen that, just yet. But we retain hope that someone in the national’s capitol will get bit by the leadership bug.