That’s the highest budget deficit since 2012. And while the trillion-dollar deficit of six years ago was driven in part by one-time events — TARP, the stimulus bills tied to the Great Recession — the current flood of red ink, driven as it is by much more intractable structural problems, seems unlikely to recede any time soon. Next year’s deficit could top $1.1 trillion, and by 2027 we could see deficits as high as $2 trillion per year.
The reaction from Congress and the Trump administration has been a bipartisan shrug. Trump didn’t mention the deficit or the debt even once in his State of the Union address. He did, however, call for $1.5 trillion in infrastructure spending over the next ten years (three times as much as Hillary Clinton proposed during the campaign), paid family leave, and a laundry list of other, more minor expenditures. And all of that is before we get to the $25 billion he wants for a border wall. On spending, Trump is not much more fiscally conservative than Bernie Sanders.