The US Government Is On Track to Top Last Year’s Record-Breaking Deficits, by Ryan McMaken

The US government goes from new high to newer high in deficits. The chances it will ever repay its debt with dollars whose value is anything approaching the value of dollars today is infinitesimal. From Ryan McMaken at mises.org:

The Treasury department has issued its spending and revenue report for April 2021, and it’s clear the US government is headed toward another record-breaking year for deficits.

According to the report, the US federal government collected $439.2 billion in revenue during April 2021, which was a sizable improvement over April 2020 and over March 2021. Indeed, April 2021’s revenue total was the largest since July of last year when the federal government collected 563.5 billion following several months of delays on tax filing deadlines beyond the usual April 15 deadline. (Not surprisingly, in most years, April tends to be the federal government’s biggest month for tax collections.)

In spite of April’s haul, however, the federal government managed to spend much more than that, with spending topping $664 billion during April. This means the federal government ran a sizable deficit in April of 225.6 billion. This was a middling sum compared to other monthly deficits this fiscal year (which began on October 1), but deficits are adding up fast.

For the first seven months of this fiscal year combined, the US government collected $2.1 trillion in revenue, yet it spend nearly twice as much: $4.1 trillion, or 90 percent more than it collected.

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