Current US Deficit Concerns

The US is currently facing a significant deficit projected to reach approximately 7% of GDP in 2024, which is notably higher than the historical average of about 4%. This elevated deficit persists despite a recovering economy since 2022, marking the largest deficit recorded outside of recessions or wartime. A major contributor to this deficit is the rise in mandatory spending, particularly on social security and healthcare programs, which are growing due to an aging population. Additionally, low tax revenues exacerbate the issue, with tax collections currently falling 1 percentage point below historical norms.