Deficit Shrinks To Lowest Level Since 2008

| by Edward Arnold

According to an annual report by the Treasury Department, the federal deficit has been reduced to $483 billion, its lowest point during President Obama's administration.

The federal budget deficit peaked at $1.4 trillion in 2009 due to the 2008 financial crisis, reports International Business Times. With more tax revenue and lower government spending, the deficit was reduced to $680 billion last year.

This is good news, but most American's don't think the deficit is shrinking. In fact, a Bloomberg poll shows that 73 percent of Americans think the deficit is increasing.

How could this be? Some think it's due to Republican arguments seeping into the public consciousness over the past six years. Their arguments include casting Obama as someone who is fiscally reckless, spending liberally without regard for the consequences.

When people believe these types of arguments, real-world impacts follow. The people elect policymakers, and, if they are to believe that the deficit is increasing, they may be inclined to vote for candidates who will slash public investments and undermine social-insurance programs. With the treasury announcing another year of continued progress in reducing the deficit, Democrats would be wise to speak publicly about the positive trend. 

Source: MSNBC / Photo Credit: MSNBCWikipedia