U.S. Treasury Reports a $209 Billion Deficit in November

December 17, 2019

The Treasury Department released its monthly economic report last Wednesday, and the news isn’t necessarily good for the federal government’s budget. 

An analysis of the full report found that the budget deficit has increased since this time last year and now stands at $209 billion.

During the month of November, the government spent $434 billion, a 6% rise from the previous month. 

The growth in spending is largely attributed to Medicare, military, and agriculture costs in addition to other federal programs.

During the month of November, the government also brought in $225 billion, a 9% increase. This growth is the result of higher collection of individual, payroll, and corporate taxes.

It doesn’t come as a surprise that customs duties also increased by 14% last month as a result of the ongoing trade dispute between China and the United States. 

The next round of American tariffs on Chinese imports began on December 15th – the economic aftermath of these new tariffs will be watched carefully by investors.

Although the fiscal year has only just begun, we have observed over the last two months that the federal deficit is 12% larger than it was at this time last year.

The Congressional Budget Office released a report in August demonstrating that this number will continue to rise – the deficit is predicted to grow above $1 trillion every year during the next decade.

In spite of this, American investment continues to grow. Although the yield on the 10-year Treasury note has fallen to 1.81%, the Dow Jones Industrial Average has risen by 19% this year. U.S. investors continue to remain confident in their assets.

Sincerely,

Doc Wellington

Retirement Insider