In the last four years, the government’s tax cuts and increased spending have caused a disappearing budget surplus and a prevailing budget deficit. Now, the public debt is equal to 64.7 percent of the United States’ gross domestic product. Are we spending too much for our own good?
Federal deficit (2005): $427 billion
Total government expenditures (2005): $2.466 trillion
Total incoming revenue (2005): $2.119 trillion
Expenditures in Iraq and Afghanistan since 9/11: $357 billion
Cost of new Medicare benefit: $534 billion
Overall trade deficit (first 11 months of 2005): $661.8 billion
Total external debt (2005): $8.837 trillion