The U.S. budget deficit for October surged to $176 billion, a record for the month, the Treasury Department announced today.
The October numbers mark the first month for the new fiscal year after the U.S. wrapped up the 2009 fiscal year that ended on September 30 with a record-high $1.4 trillion budget deficit due to increased government spending to stop the recession and the financial crisis. The final deficit for the 2009 fiscal year was equal to 10 percent of the nation's GDP, the highest shortfall relative to GDP since 1945, the final year of World War II. (emphasis mine)
Quick note: does anyone ever attribute the recession and financial crisis to governement spending? Statements like the one italicized above treat recession as if it is a mystical force with no cause or explanation and serve to rationalize the horrific and dangerous increase in federal spending.
It's as if recession were an approaching army and the government fires at it with deficit spending. The only problem is that they are looking in a mirror.