The federal government's gusher of red ink

  • 2 April 2019
  • NormanL

The federal government's spending binge hit fresh new highs in the first part of the year, with outlays rising to levels last seen in the Great Recession:

The federal government spent $1,822,712,000,000 in the first five months of fiscal 2019, the most it has spent in the first five months of any fiscal year since 2009, which was the fiscal year that outgoing President George W. Bush signed a $700-billion law to bailout the banking industry and incoming President Barack Obama signed a $787-billion law to stimulate an economy then in recession.

At the same time that federal spending was hitting this ten-year high, federal tax revenues in the first five months of the fiscal year were hitting a four-year low of $1,278,482,000,000.

We have repeatedly written the government has a bipatisan spending problem and that left unchecked -- even modestly -- it will inevitably lead to a painful reckoning. We can hope the political class will find the courage to curb spending. But that seems highly unlikely. If anything, the growing trend, at least on the left, is promising "free" college educations, free health care, and so much more (nevermind who pays...we all do).

The sad thing is, this approach will gain a lot of support - and votes -- come election day. 

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