USA Federal Government Expenditures and Revenues

ECON - 2009-09-13 - USA receipts and outlays

 

 

 

 

 

 

 

ECON - 2009-09-13 - USA Deficit % of GDP

 

 

 

 

 

 

 

Scott Grannis, who goes by the pseudonym of Califia Beach Pundit, posted these charts at Seeking Alpha.  Until 2007, he was Chief Economist at Western Asset Management Company, a California-based manager of fixed-income funds for institutional investors.  You may learn more about Mr. Grannis at http://seekingalpha.com/author/calafia-beach-pundit .

These two charts highlight dramatic changes in US Government expenditures and revenues.  The federal deficit in the 12 months ending August 2009 was just over $1.5 trillion, or about 10.5% of gross development product (GDP).  As Mr. Grannis points out, the major causes of deficits in the past have been collapsing revenues.  Since mid 2008, a combination of collapsing revenues and soaring expenditures are driving the Federal deficit to levels not seen since World War II when the deficit reached a historic high of 28.05% of GDP in 1943.

The good news is that, as of September 2009, the  three three month annual rate of spending is down to 11% from a high of 28%  a few months earlier.  However, Federal spending continues to rise and a good portion of the $787 billion stimulus spending package remains to be spent.

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