In 2007, Washington spent $1.06 for every one dollar in revenue it took in.
In 2008, that ratio climbed to $1.18 for every $1.
In 2009, The U.S. government spent $1.67 for every dollar in revenues.
In 2010, it spent $1.60 for every $1 it had.
And this year, the Congressional Budget Office says we're on track to spend $1.63 for every $1 of revenue.
Source: http://www.moneyandmarkets.com
No way taxes could be raised to match the growth in spending. The key to our fiscal salvation is to drastically cut government outlays. But the politicians in office won't allow cuts it in any meaningful way. Too much of their power and popularity is now purchased with deficit dollars.
Even with the recent debt deal, spending versus revenues this year will be higher than last. And we never get surpluses that would allow us to pay down the debt that was previously accumulated.
The system and its direction are not sustainable. How much longer can the facade last that it is?
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