When former President Barack Obama came into office in January 2009, the country was in the middle of the worst economic crisis since the Great Depression. After getting the country back on track, Obama's works looks to be unraveling with the presidency of Donald Trump.
Trump deficit
During the 2008 presidential election, the biggest news story was over the financial crisis that ripped apart the United States economy. During Obama's first year in office, unemployment peaked at over 10 percent, with the housing market crumbling, and the job market drying up.
Fast forward eight years, and Obama leaves the White House with an unemployment rate of under five percent, while helping the economy to produce over 70 straight months of private sector job growth. However, with the election of Donald Trump, that progress could be halted. As reported by The Hill on January 24, the economy is poised to take a major step back.
CBO: Federal deficit to rise in 2019 for first time in decade https://t.co/i10ICcL3Cb pic.twitter.com/HmyyIBGitm
— The Hill (@thehill) January 24, 2017
According to a report by the Congressional Budget Office (CBO), the federal deficit is expected to increase in 2019 for the first time in a decade. The last time the federal deficit grew was in 2009, the first year Obama was in office, during the economic downturn.
The CBO shows that 2017 and 2018 are still projected to be lower, with the bounce coming in the following year, mostly due to Social Security and Medicaid costs increasing.
The Budget and Economic Outlook: 2017 to 2027 https://t.co/pt3aVUsLzs pic.twitter.com/x3yCSq0Y7H
— U.S. CBO (@USCBO) January 24, 2017
In 2016, Obama's last full year as president, saw a federal deficit of $587 billion, which is projected to reach $601 billion in 2019.
President Donald Trump has inherited a healthier economy compared to what the former president took on in 2009, but he still has some work to do.
CBO details
While federal tax revenue is expected to grow at a faster rate than the economy, the concern is over the aforementioned costs of entitlement programs. The CBO report is projecting federal revenue to increase to as much as 18.4 percent of GDP over the next decade, though government spending will also increase, being projected to bump up to over 23 percent. Donald Trump has not yet given the full role out of his economic plan, but a various analyses have been mixed in their impact on the future of the economy.
