Is there a legitimate reason for deficits?  Certainly. Borrowing money to finance the construction of an aircraft carrier might be a good example.But since 2008, in every single year (with the lone exception of 2015) the federal deficit, expressed as a percentage of GDP, has been greater than the year over year growth in GDP itself.  (stlouisfed.org)Think about that statement for a moment.  Also consider this.  When GDP is calculated roughly 1/2 of all government spending is considered an addition to GDP.  There is no room in the comments to explain this to you, but if you do a search you will come to understand how the calculations are made.  The economists out there will also understand how the money multiplier used to increase GDP when debt was relatively low but barely does so today with such high debt levels.We have a debt ceiling.  But it's just eye candy for the masses.  It's a political game.  If the Treasury Department can play games with federal financial obligations, does the debt ceiling even matter?  Of course not.Meanwhile, as a nation we go further and further down the debt hole.  What we are seeing today is debt racked up in large part to fund day to day operations.  Think of a business borrowing money in order to make payroll.This is the result of Mr. Bernanke's grand economic experiment.  Most signed onto to his grand plan because it was the easy way out of the financial crisis. Today Ben is gone.  Someone will have to make hard choices.

Is there a legitimate reason for deficits?  Certainly. Borrowing money to finance the construction of an aircraft carrier might be a good example.But since 2008, in every single year (with the lone exception of 2015) the federal deficit, expressed as a percentage of GDP, has been greater than the year over year growth in GDP itself.  (stlouisfed.org)Think about that statement for a moment.  Also consider this.  When GDP is calculated roughly 1/2 of all government spending is considered an addition to GDP.  There is no room in the comments to explain this to you, but if you do a search you will come to understand how the calculations are made.  The economists out there will also understand how the money multiplier used to increase GDP when debt was relatively low but barely does so today with such high debt levels.We have a debt ceiling.  But it's just eye candy for the masses.  It's a political game.  If the Treasury Department can play games with federal financial obligations, does the debt ceiling even matter?  Of course not.Meanwhile, as a nation we go further and further down the debt hole.  What we are seeing today is debt racked up in large part to fund day to day operations.  Think of a business borrowing money in order to make payroll.This is the result of Mr. Bernanke's grand economic experiment.  Most signed onto to his grand plan because it was the easy way out of the financial crisis. Today Ben is gone.  Someone will have to make hard choices.

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