The Daily The Problem With a $2 Trillion Deficit
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Oct 23, 2023 
Jim Tankersley, an economic policy correspondent for The New York Times, delves into the alarming rise of the U.S. federal deficit, now nearing $2 trillion. He discusses how this deficit contradicts the ongoing economic growth, highlighting the negative feedback loop created by rising borrowing costs. Tankersley contrasts Republican and Democratic approaches to managing the deficit and emphasizes the complexities of government budgeting amidst rising interest rates. The conversation offers insight into the challenging choices lawmakers face in addressing these pressing fiscal issues.
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High Deficit
- The $2 trillion deficit is a significant jump, being twice the size of last year's.
- This marks the third time in U.S. history with such a high deficit, the previous two occurring during the pandemic.
Deficit Increase During Growth
- Deficits typically decrease during economic growth, but this time, it increased.
- This unusual situation is concerning economists.
Reasons for Concern
- Economists are increasingly worried about the deficit due to two factors.
- These factors include the deficit's growth during economic expansion and rising borrowing costs.