The Deficit and National Debt
Congress has a big checkbook, and the government spends more money than it brings in. The federal budget deficit is the difference between government spending and government revenue. The federal budget deficit for the first 10 months of fiscal year 2010 is $1.2 trillion, according to the Congressional Budget Office. That deficit, however, is about $90 billion less than the first 10 months of last fiscal year. The overall national debt, or the money that the government has borrowed,has now reached $13 trillion. Government spending and the increasing federal debt have become a major issue in the 2010 congressional elections. Republicans charge Democrats with spending too much without paying for it. The majority of Senate Republicans opposed an extension of unemployment benefits packages in July of 2010 because they were concerned about adding to the growing deficit. Democrats counter that Republicans have failed to pay for the tax cut extensions they favor. Congressional spending has become the fuel to the fire of the fiscally conservative Tea Party movement. Democrats say that spending can help stimulate the economy and create jobs, but members are increasingly looking for ways to offset costs through taxes or imposing fees. Either way, congressional spending will be an important issue for voters in both parties.
The latest news on The Deficit and National Debt
The debt ceiling plays no role in enforcing budget discipline.
John Boehner's debt ceiling move gives Republicans the political high ground on the economy.
Republican budget is not about defending the country, but defending defense contractors' profits.
Republicans in Congress talk big about defense—they just don't want to pay for it.
House Republicans propose commonsense cuts that will keep America safe.
Cutting the defense budget puts the country at risk while ignoring the true source of government overspending.
GOP budget proposal is fiscally irresponsible and morally wrong.
How can the public sort out such differences among economists?
Chris Van Hollen is optimistic that Republicans will be forced to negotiate after the election, regardless its result.
House Budget Committee Dem Chris Van Hollen says going after social welfare programs will cost Republicans politically.
