The U.S. government is spending more than it is bringing in. The result is the budget deficit. Over the next 10 years, the deficit is projected to exceed $10 trillion if current budget policies are continued. By 2019, even under optimistic assumptions, the deficit will be 5.5 percent of GDP, an extremely high figure in good times. Deficits are a problem because whether financed domestically or abroad, they result in reduced national income for the United States and its citizens, tougher credit for homeowners, and reduced expansion possibilities for businesses.
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