I think it is instructive to provide a chart on what is going on in the Federal budget. Government spending has been flat for almost five years and the deficit gap is narrowing fast. Yes, part of the flattening out in spending has come from ultra-low interest rates on debt outstanding, but still... Can't say that the Obama administration is a spendthrift..
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ReplyDeleteOf course, the sequester is one part of the equation and a huge influx of capital gain tax in advance of an increase in rate is another. I would guess that if Obamacare is not radically altered, we will start to see deficit numbers climb again, particularly if there is any further economic weakness.
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