Despite the “limited government” mantra perpetrated by many so-called conservative Republicans, who now control basically everything in the country (both Houses of the Congress and the Presidency), judging from the official figures released earlier on Thursday by the Treasury, monthly Federal spending topped 400 billion dollars for the first time in history (June figures, so buckle up for July and August…).
So much for limited government, right? The new boss is just the same as the old boss. So why bother with voting, one may ask?
The previous record with regard to (real)monthly Federal spending is held by the same administration, in March of 2017 respectively, when the US Treasury spent “only” 392 billion dollars (and some change). To get a sense of perspective about how this country is going down the tubes (the US national debt is very close to 20 trillion dollars), the Treasury spent basically the same amount in August of 2012, i.e. 392 billion give or take in inflation adjusted dollars.
Despite breaking all the records when it comes to spending last month, the Treasury only collected 338,600,000 in taxes in June, compared to the 428+ billion spent, which translates into a monthly deficit of approximately 90 billion. If you multiply 90 billion with 12 months, it becomes clear that the Treasury is running a trillion dollars a year deficit.
So far, the Treasury collected 2.5 trillion dollars approximately and spent 3 trillion (and some change), meaning that in the first 6 months it ran a half trillion dollars deficit, i.e. by the end of the year the US will be in debt another trillion, just like in the era of dear leader Barry Obama. So, nothing changed really. The big leap in spending from last last year’s June (328 billion spent in inflation adjusted dollars) to the current year is due to dramatic increases in the budgets of the Departments of Housing and Urban Development, Health and Human Services and Education.
Truth be told, this is still Obama’s budget, yet still stomach churning when you mention the fact that the Republicans control both the Legislative and Executive branches. If these numbers are the same next year at this time, then we can blame the Trump administration. The current numbers are all residual effects of Barry’s disastrous Presidency. We will be watching.
However, since 72% of federal government spending is mandated, not discretionary, and the spending automatically escalates every year, it’s impossible to cut spending without major entitlement and social program reform.