Road to Ruin – The United States Deficit: Lacalle

The U.S. deficit for 2023 was $1.7 trillion, up from the previous year, making it the worst GDP growth excluding debt increases since 1929. This hints at a recession masked by excess deficit spending. Despite tax hikes by the Biden administration, revenues fell by 9.3% from 2022. Higher taxes didn’t yield expected revenues, indicating a weak economy. The U.S. can’t spend less than 22.8% of GDP, and taxing the wealthy can’t cover the deficit. Rising public debt and inflation challenges the U.S. dollar’s position globally. China is rapidly selling U.S. bonds, and the U.S. 10-year Treasury yield exceeds 4.5%. High government spending doesn’t guarantee growth or wage increases. The U.S. must reduce its deficit to protect its currency and economy.