U.S. Deficit Hits $1.8 Trillion: Apparently, Our Money Trees Just Went on Strike!

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The U.S. Treasury building in Washington, D.C., on Aug. 15, 2023 – where our fiscal woes are diligently tallied like not-so-fun bingo.

In a headline that might as well read “Guess Who’s Back, Back Again,” the Biden administration has unveiled a budget deficit surpassing $1.8 trillion in fiscal 2024, rising more than 8% from last year. This is the third-highest deficit ever; because why not keep climbing the debt ladder like an overzealous tree trimmer?

Despite September charming us with a quaint surplus of $64.3 billion—likely due to calendar tricks that made benefit payments play hide and seek—our grand total still totaled $1.833 trillion, which is like saying, “We almost made it, but then we remembered we’ve never met a budget we didn’t want to break.”

For those keeping score, the U.S. raked in a staggering $4.9 trillion, which might sound impressive until you see it fail to measure up against the $6.75 trillion it eagerly spent—resulting in a fiscal slapstick scenario where the government gives itself a high-five for bringing home a paycheck while simultaneously handing all its money over to an empty wallet.

Now, let’s not ignore the elephant in the room—no, not the one asking us for another special delivery of money, but rather the staggering government debt ballooning to $35.7 trillion. That’s $2.3 trillion more than just last year. If you squint hard enough, you might see our national debt slowly cranking out a sequel: Debt Harder: The Reckoning.

High interest rates, courtesy of the Federal Reserve’s heroic attempts to tame inflation (think of it as a dragon they’re trying to slay with a feather), have spiked interest expenses to a record-setting $1.16 trillion. That’s right, for the first time, our interest bill has topped a trillion—because nothing says “we’re in control” like borrowing money and paying exorbitant fees to do so.

If you’re wondering about the average interest rate on our breathtakingly mountainous pile of debt, it’s a thrilling 3.32%, up from 2.97% the year before—yes, folks, the cost of borrowing is trending up faster than your friend’s home renovation project.

Oh, and here’s a fun fact: the deficit now hovers above 6% of the total U.S. economy, which is about as common these days as a unicorn in a board meeting. Historically, this has been rare during an economic expansion—like trying to find a sober person at a college party.

In an astonishingly cheeky turn of events, the Congressional Budget Office has predictably forecast that deficits will keep gallivanting upward, bouncing toward a staggering $2.8 trillion by 2034. If you think our current debt, which is about to clamber toward 122% of GDP, is daunting, just remember: grand averages are just numbers in an excel sheet until someone brings snacks.

So, buckle up, everyone! This ride through the budgetary funhouse is sure to be bumpy, with lots of mirrors that definitely aren’t reflecting what we want to see!