Stop the Austerity. The Deficit Is Dropping Precipitously.

Via David Frum, here’s AEI’s John Makin with the positive news:

The United States has actually made substantial progress toward deficit reduction in 2013 …

On January 2, as part of an agreement to avert the sharpest austerity that would have been triggered by the “fiscal cliff,” Congress did pass a total of about $180 billion of annual tax increases. The result is that, by the 2014 fiscal year, the fully phased-in sequester, along with the January 2013 tax increases, will cut the US deficit—already on a downward path—from $1,089 billion in 2012 to $845 billion in 2013, and then further to $615 billion in 2014. In terms of the deficit-to-GDP ratio, that is 7 percent in 2012, down to 5 percent in 2013, and down further to 3.7 percent in 2014.

We already knew about the $845 billion number, but I was unaware of the $615 billion figure. And regarding the president’s promise to cut the deficit in half in his first four years, he only missed the goal by a year — the deficit has dropped from 9.9 percent of GDP in 2009 to 5 percent of GDP at the end of this year.

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  • trgahan

    Unfortunately, this will be dismissed as “liberal math.”

    Some conservative think tank/pundit will respond by lecturing us that we will be Greece by Friday if we don’t privatize Social Security and Medicare into the hands of their financial backers so they can earn 15 percent profit per dollar and use the public’s money to make high risk speculative investments at no risk to themselves.