Despite a strong economy, the federal deficit continues to grow

Ben Bradford Jun 13, 2019
HTML EMBED:
COPY
An October 18, 2018 photo shows the seal of the US Treasury in Washington, DC. MANDEL NGAN/AFP/Getty Images

Despite a strong economy, the federal deficit continues to grow

Ben Bradford Jun 13, 2019
An October 18, 2018 photo shows the seal of the US Treasury in Washington, DC. MANDEL NGAN/AFP/Getty Images
HTML EMBED:
COPY

A growing economy typically means shrinking deficits, but a new report from the U.S. Treasury Department shows the government spent $740 billion more than it took in from October to May — almost the entire federal deficit of the previous budget year.

Last month’s deficit looks even worse than it would due to a timing quirk: June 1 fell on a Saturday, so more benefits were paid in May. But experts say tax cuts in 2017 and increased spending have contributed to an unprecedented fiscal gap over the past eight months.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.