Congressional Budget office(CBO) estimates that the budget deficit of the fiscal year 2011 is about $1.3 trillion. The deficit for 2012 was to improve little(around $1.1 trillion). The deficit for 2013 was $680 billion. Finally the deficit reduced to $483 billion for 2014. The federal budget deficit of 2015 was $439 billion. The federal budget deficit of 2016 was $534 billion. The federal budget deficit of 2017 was $668 billion. The federal budget deficit of 2018 was $779 billion. The federal budget deficit of 2019 was $896 billion. CBO announced a federal budget deficit of $3.1 trillion in 2020, more than triple the shortfall recorded in 2019.
but a federal budget deficit of 2021 was $2.8 trillion, smaller than 2021 but still huge in the historical size. The budget deficit further was reduced to $ 1.4 trillion in 2022 and $1.7 trillion in 2023.
Q1) Are we going back to the budget deficit cycle again? Is it because of growing Government spending, the war against terror or the president Trump’s stimulus policy of tax cut or emergency government spending due to Corona virus?
Q2) Although the war against IRAQ was over quick(?), there will be involved with the additional cost after the war including the reconstruction and humanitarian aids ,or fighting against ISIS or war in Ukraine. How does this military cost contribute to our rising budget deficit?
Q3) Did Trump’s stimulus package( Spending increase and Tax cut) contribute to another huge budget deficit down the road? Is this TAX CUT with large budget deficit necessary for the economy ( could this policy be overheating the economy or inflationary?) or will it cause another financial danger to haunt US economy soon due to crowding out from these huge deficit? or do you agree with supply- sider that Tax cut can boost economic growth so much to generate tax revenue and this will help reducing deficit and debt? or did Trump tax cuts contribute to worsening income inequality between the rich and the poor? Or Biden’s Covid stimulus spending will prevent another recession or lead to inflation?
Q4) To finance current budget deficit, US government relies on T bond sales. The significant portion(over 30%) of T bonds are purchased by foreign governments or capitalists(lately China). What is your opinion about relying on foreign debt to finance US budget deficit? If some foreign countries became unhappy about trade or political matter with US government or due to lack of confidence over US T Bond and decided to cash out (sell) US T bonds they are holding, what economic consequence do you expect to be occurred?
Q5) US national debt to its GDP is a little over 100%. Japanese national debt to its GDP is getting close to 250%. Could this be a potential disaster for the global economy ,since Japanese economy is 3rd largest one in the world? or do you think US does not need to worry about its own debt, considering its own size of economy(GDP)?
