America's Unsustainable Fiscal Trajectory: US Deficit Surpasses $1.613 Trillion

Former US Treasury Secretary Larry Summers warns of a dangerous fiscal trajectory for the US, with the budget deficit reaching $1.613 trillion. In an interview with Bloomberg, Summers suggests the deficit could approach 10% of GDP, casting doubt on the Congressional Budget Office’s more conservative projections. Citing underestimated revenues, unrealistic expectations on defense spending, and skepticism about the phasing out tax cuts, Summers believes the true fiscal picture is more dire. Latest Treasury data reveals a $221 billion deficit for July 2023, with $67 billion spent on debt interest alone, equivalent to the total annual expenditure on education and transportation.