September 15, 2010
The U.S. government is spending more than it is bringing in. The result is the budget deficit. Over the next 10 years, the deficit is projected to exceed $10 trillion if current budget policies are continued. By 2019, even under optimistic assumptions, the deficit will be 5.5 percent of GDP, an extremely high figure in good times. Deficits are a problem because whether financed domestically or abroad, they result in reduced national income for the United States and its citizens, tougher credit for homeowners, and reduced expansion possibilities for businesses.