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US Budget Deficit: 2008 Doubles 2007

By September 10, 2008

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The Congressional Budget Office projects the federal deficit for fiscal 2008 (which ends September 30) at $407 billion for fiscal 2008, more than double last year's figure. Next year's deficit is currently projected at $438 billion -- that's before taking into account Fannie Mae and Freddie Mac.

As the Wall Street Journal notes, the problem is spending, which is expected to hit 21.5% of GDP next year. I can't rationalize the accompanying chart, however. It shows "defense" spending increasing only 64% (inflation-adjusted dollars) during the Bush era. Where, pray tell, is the bill for Iraq and Afghanistan? If those two wars haven't even doubled the Pentagon budget, then it's long past time to figure out where all of those other defense dollars are going.

Of course, both McCain and Obama promise to balance the budget ... but on the other side of their mouths they talk about expanding government spending on this or that. (The politically correct thing to spend money on is "energy" -- however broadly defined that might be.)

Consequentially (and unsuprisingly), the The Concord Coalition is calling for Congress to enforce congressional pay-as-you-go rules (paygo). Hah!

See Gross Federal Debt - 1940-2007 and Debt as a Percent of GDP, 1940-2007

Comments

September 11, 2008 at 6:44 am
(1) Alphast says:

Isn’t war spending outside of the DoD normal budget? And isn’t it true, then, that all of these wars are payed for by an increase of the public debt?

September 11, 2008 at 6:47 am
(2) Alphast says:

And, I forgot to ask… Isn’t it true that Dems have voted these budget increases as well as the war effort money? Pelosi, Clinton (and Obama?) and co are just as responsible, by their complicity, as the Bush team. At least the Bush team as the excuse of stupidity and ideology. What is the Dems excuse?

September 11, 2008 at 12:15 pm
(3) Guardian says:

Well, Alphast, I suppose having the threat of the Republicans calling out the “Dems” for not wanting to support the troops was too much for them. Keep in mind that Republicans are liars and Democrats are spineless.

September 12, 2008 at 7:33 am
(4) Alphast says:

@ Guardian

Fair enough, I guess. By the way, this website is edifying: http://www.defenselink.mil/contracts/

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