Question

Are we going back to the budget deficit cycle again? Is it because of slow recovery or the war against terror or the slow down global economy or protective trade policy?

Answer 1

The federal deficit of nation for fiscal year 2020 is nearly $1.10 trillion. It arose because spending by our government is $4.75 trillion is more than its revenue of $3.65 trillion. It clearly reflects that we are again going back to the budget deficit. In my opinion the main reason for it is the war against terror. The terrorist attacked our country on September 11, 2001 (9/11) and reshaped the financial events in our economy. Nearly over 18,000 small businesses were destroyed and over 60 billion losses in insurance after the towers fell. There was a huge financial loss and it lead to a war against terror. The defence spending in 2012 was $855 billion and in Trump administration is expected to set new records as it is estimated to touch $989 billion. The military spending n our nation is higher than the next 10 largest combined government spending. It's nearly three times more than military budget of China, and 10 times more than defense spending by Russia. Without cutting the defense spending it is difficult for U.S. to reduce the budget deficit