U.S. posts smallest budget deficit in five years
Surge in new jobs helping to propel once-sluggish economy
Amid all the gloom and doom - some good financial news, finally. The U.S. posted its smallest budget deficit in five years as employment gains helped propel revenue to a record. Consumer spending exceeded by $680.3 billion in the 12 months that ended September 30, the narrowest gap since 2008.
Increased hiring has helped reduce the country's deficit as a share of gross domestic product by more than half in the past four years.
Increased hiring has helped reduce the country's deficit as a share of gross domestic product by more than half in the past four years. Bolstering revenue this year were higher payroll taxes Congress allowed in January. Sequestration, across-the-board cuts has been since March.
"We've made a lot of fiscal progress in the U.S. because of the sequester cuts, tax rates going back to historic norms and the economy improving," Bricklin Dwyer, an economist at BNP Paribas in New York says. "Politicians have, thus far, avoided the most difficult choices -- addressing unsustainable spending on entitlements such as Medicare and Medicaid."
In addition, revenue jumped 15.2 percent to $301.4 billion in September from a year earlier. This increase brought the annual figure to $2.77 trillion. Spending increased 21.5 percent to $226.4 billion last month, contributing to a 12-month total of $3.45 trillion, it showed.
The unemployment rate fell to an almost five-year low of 7.2 percent in September. According to the Labor Department, payrolls have grown by 1.6 million workers so far this year.
"Our deficits are getting smaller," President Barack Obama told high school students in Brooklyn last week. "We don't have to choose between growth and fiscal responsibility; we've got to do both."
A new budget agreement is being hammered out by Congress after a battle between Tea Party-allied Republicans and the Obama administration over limiting debt led to partial suspension of federal operations earlier this month.
It must be noted that mandatory cuts don't touch benefit payments for programs such as Social Security, Medicare and Medicaid. Many Republicans want to replace the automatic cuts with reductions in spending on these entitlement programs that account for most of the nation's long-term debt.
However, Democrats, which include the president have indicated they're open to some of these ideas as long as they are paired with new tax revenue, which Republicans oppose.
A birth foretold: click here to learn more!
© 2014 - Distributed by THE NEWS CONSORTIUM
Pope Francis Prayer Intentions for March 2014
Respect for Women: That all cultures may respect the rights and dignity of women.
Vocations: That many young people may accept the Lordís invitation to consecrate their lives to proclaiming the Gospel.
Rate This Article
Leave a Comment
More Business & Economics News
- $30 trillion increase from $70 trillion between mid-2007 and mid-2013 sends global debt over $100 trillion
- Wowza! Restaurant starts charging diners for Obamacare
- Time banking - where time is BETTER than MONEY
- Google tops Exxon as world's second-most valuable company - for a day
- Bill Gates thinks poverty will be eliminated by 2035... But he's missing this one thing!
- World's richest playboys forgot to address the world's most serious problems between parties in Davos
- CROWDFUNDING: Brother, can you spare - funding for my new movie project?
- Here we go again! Increase the government's borrowing limit before late February, Treasury Secretary warns
- Pope Francis sends a message to Davos elites -- they'd do well to listen
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.