Economy

The Treasury Borrowed a Record Amount of Money in the First Quarter

JM Ashby
Written by JM Ashby

The United States borrowed a record amount of money during the first quarter of the year according to new numbers released by the Treasury Department yesterday afternoon.

To fully appreciate the significance of that, I think you have to put it into perspective.

From USA Today:

WASHINGTON — The Treasury Department announced Monday that the government borrowed a record $488 billion in the January-March quarter, but officials expect borrowing needs will decline sharply for the current April-June quarter.

Treasury said that actual borrowing in the first quarter exceeded the old record of $483 billion set in the first quarter of 2010, a period when the country was struggling to pull out of a deep recession and prop up the financial system following the 2008 financial crisis.

It is truly quite insane that we're surpassing records set during the Great Recession and financial crisis at a time when we have a growing economy and no crisis.

A lot of different policies can be factored into this number, from the increased costs of health care the GOP has fostered by repealing the individual mandate and canceling cost-sharing reduction payments to the increased amount we're spending on defense, but the primary factor is the GOP's $1.5 trillion tax cut. It will not pay for itself.

Given that we're setting new records without a financial crisis, it makes me wonder what the next crisis could look like. I also wonder if the next crisis will be dumped at the feet of the next president just like it was for President Obama.

  • muselet

    Will someone please remind me why anyone considers the GOP to be the party of fiscal restraint?

    Thanks in advance.

    –alopecia

  • They always do this, and it just never sinks in!

  • Aynwrong

    And every single Republican official and pundit (I’m thinking Joe Scarborough in particular) who were practically rending garments over government spending and debts and deficits live on television for Barack Obama’s entire first term in the White House now couldn’t spell the word deficit if you pointed the 2nd Amendment at the their heads.

  • Georgie
  • And not a one republican voter will care. They couldn’t care less if they spend us into another recession/depression as long as they pissed off people as they did so. It’s repugnant on every level. Government by trolling. 😒

    • Georgie

      So true and so sad.

  • Username1016

    Argh. Obama had to ask for a smaller stimulus than optimal, because of all the pearl-clutching about going into that much debt. And now Trump just blows through that record without the shadow of a justification! Guess they don’t call him The King of Debt for nothing…

    • Badgerite

      He’s also the King of Bankruptcy. So there’s that.

    • Draxiar

      I’m pretty sure the Tea Party is just fine the borrowing this time.