The U.S Treasury Department announced Monday the government’s annual deficit reached nearly $1.1 trillion in June. With almost three full months left of spending in the fiscal year, the deficit will continue growing.
In May, the Obama administration estimated the annual deficit will hit $1.84 trillion by the end of the fiscal year.
$1.84 trillion is enough money to stack one dollar bills on top of each other for over 124,000 miles. Try that the next time you’re high.
The Wall Street Journal notes that deficits at this level could hinder economic recovery by undermining the value of the dollar and driving up interest rates.
The record deficit coupled with rising unemployment has begun to hurt President Obama politically. Even some Democrats have begun to question the wisdom of allowing deficits to continue rising. Rep. Charlie Melancon, D-LA, who will be taking Sen. Vitter’s senate seat next year, stated “Our budget deficits didn’t appear overnight and won’t magically go away tomorrow”.
The Obama administration may seek to defray criticism about the deficit by claiming they inherited the deficit from the Bush administration. Whatever. Such a claim would be inaccurate. HotAir.com contributor Ed Morrissey notes Democrats in Congress postponed budgeting for Fiscal Year 2009 until after Bush left office.
Read more of Morrissey’s analysis here.
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