Out of Control Spending

Actually, the federal government had a significant budget surplus during the month of April; the largest since 2008.

WASHINGTON (MarketWatch) — The federal government had a budget surplus of $114 billion in April, the Congressional Budget Office estimated Wednesday. That is $1 billion more than a year ago and would be the biggest April surplus since 2008. CBO estimates receipts were 2% higher in April versus the same month a year ago. Spending rose 2.5%. For the fiscal year to date, CBO estimates the deficit to be $301 billion, down $187 billion compared to the same period in 2013.

It’s looking more and more likely that the deficit will be eliminated before President Obama leaves office. My hope is that this happens prior to fiscal 2017 so the last budget President Obama signs into law will be deficit free.

Republicans could stall at the tail end of 2016 to ensure that doesn’t happen, but losing another election will certainly take the wind out of their sails.

Regardless who is president in 2017, President Obama will have put them in much stronger position to tackle pressing issues like climate change.

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  • http://moodmovesmarkets.blogspot.com/ Eschatologisaurus Rex

    I appreciate the sentiment. But I 100% guarantee you that if we eliminate the deficit by 2017, we’ll be in a deep recession by 2019.

    • JMAshby

      Based on what? You believe we’ll enter another recession because of a lack of deficit spending? If that were the case, we’d already be there. The deficit has been cut by nearly $1 trillion since 2009 and the economy is still growing, not shrinking.

      The real threat is the next president deciding a surplus means we can afford a tax cut just like Bush.

      • http://moodmovesmarkets.blogspot.com/ Eschatologisaurus Rex

        I think periods of government deleveraging have been great times to invest in stocks. They also, when pursued aggressively enough, tend to lead to economic contractions.

  • Christopher Foxx

    Regardless who is president in 2017, President Obama will have put them in much stronger position to tackle pressing issues like climate change

    It it’s a Republican, the stronger position they’re in won’t matter. It will just be “Surplus? The we should cut taxes for the rich!”

    (Of course with Republicans you could replace “Surplus” with any word you want. It would still be used as a reason to cut taxes for the rich.)

    • JMAshby

      As of this time I have zero expectations of a Republican winning in 2016. Just look at their field of possible candidates. One joke after another.

      • Christopher Foxx

        As has been the case for the last several elections, but they still manage to garner 46 to 51% of the popular vote.

        There are Tea Partiers, Republican lies, Fox News support and basic misogyny on one side. Self-absorbed assholes who want to punish Obama for not being perfect on the other. Throwing complacency into the mix is not a good strategy.

  • Ellen Kuhlmann

    Yes, but the last time the deficit was turned around (Clinton/Gore years) didn’t that lead GWB to institute the tax cuts, or at least allow him to do so. I’d like to think this is a sign of good things to come, but think it will only be sustained if a Democrat follows Obama into the White House in 2016.

  • D_C_Wilson

    Regardless who is president in 2017, President Obama will have put them in much stronger position to tackle pressing issues like climate change.

    Or start another war in the Middle East, whichever is their higher priority.