Spending is the Deficit Problem

PrintPrint

The figure shows projected federal spending and revenues in coming years, according to the administration’s new budget figures. The deficit is the gap between the lines: 

Federal spending as a percentage of GDP will remain well above the average for the last half century (20.3 percent from 1959-2009). Revenues as percentage of GDP are projected to rise in coming years as the economy recovers (the Obama forecast assumes most of the Bush tax cuts are continued). Average federal revenues the last half century (1959-2009) have been 18 percent of GDP. Obviously then, the deficit is cause by above normal spending, not a lack of revenues.