In 2009, the United States had a historically high deficit of $1.42 trillion since 1945. As of 2010, the United States has a deficit of $1.29 trillion. The fiscal 2010 deficit ended on September 30th and represented 8.9% of the economy. The slight decline this year is partially due to higher tax receipts and less spending. Both the corporate tax revenue and receipts from the Federal Reserve rose due to investments in housing and other areas of the economy. However, high unemployment rates caused individual income and payroll tax receipts to remain low. Government spending fell because of declines in costs of the Troubled Asset Relief Program, mortgage payments, and funds spent on federal deposit insurance. Spending rose approximately 5.5% because of increased cash payments on Social Security, Medicare, Medicaid, etc. However, most money was spent on unemployment benefits. Financial experts say that the large deficits are not the primary source of the country's biggest financial problems.
As we all already know, our economy is not doing good. We are in slight depression as people continue to lose their jobs and finances are becoming a bigger and bigger problem from people everyday. The government has been trying to spend less but I don't think the people of the United States are benefiting from that. The only help they are receiving is the money being spent on unemployment benefits. Individual income and payroll tax receipts are down. I don't think there is any one or overall solution to help fix our financial problems as a country. We just have to work together to help keep our country up and moving.
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