Trump is falling short on taming the deficit—here's why 'it could get ugly' via YahooFinance
The federal government is running a vast ocean of red ink that shows no signs of drying up. Can Uncle Sam keep spending without dire consequences?
Yet for all sorts of reasons, bond investors haven’t been worried. Fears about the global economy, coupled with the U.S.-China trade war, have sent yields to historic lows. At least for now, the status quo doesn’t appear to be in jeopardy. ‘It could get ugly’Revenue sources like corporate income taxes jumped by 12%, according to the CBO. But that extra revenue is quickly swallowed by spending on major mandatory programs—such as Social Security and Medicare—which saw their outlays climb by 6%. Interest payments on spiraling U.S. public debt leaped by 14% while costs for the military rose by 8%.
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