Budget Deficit By The Presidents Of The United States Of America

Which president was the most likely to run a budget deficit? That question can be answered in two ways. The most prevalent method is to add up the president's deficits for each year in office. A president, on the other hand, has no control over the deficit in the first year. For most of that year, the previous president's federal budget was still in force. The federal government's fiscal year runs from October 1 to September 30. As a result, a new president's first year in office has no impact on the deficit from January to September. Looking at each president's budget and then summing the deficits for those budgets is a better way to compute the deficit.

Important Points to Remember

When tax collection falls short of spending in a fiscal year, the outcome is a budget deficit.
Presidents have some power over the debt through policy decisions, but they have no authority over required spending passed by Congress.
Barack Obama, Donald Trump, George W. Bush, and Ronald Reagan are the four presidents with the highest deficits.

The 4 Factors Affecting the Deficit

Each president's deficit can be influenced by four things.

1. Budgetary Needs

The required budget and its deficit are beyond the president's authority. This includes payouts from Social Security and Medicare. These are the two most significant costs for each presidency. The amount that must be spent is determined by the acts of Congress that created the programs. The president's budget can only estimate the cost of these programs. They will have to live with the spending unless the president can persuade Congress to reverse it.

2. Controlling Your Spending

The president does not have the authority to regulate spending since the Constitution gives that authority to Congress. The president's budget is only a beginning point. Each chamber of Congress also creates a budget for discretionary spending. The president reviews and signs the final budget once it has been combined by the two houses. If there is a snag in the budget process, Congress can use a continuing resolution to keep government agencies operating at existing budget levels; otherwise, they will shut down. There have been four longer-than-one-day shutdowns. The first two occurred in the winters of 1995–1996 and 2013, respectively. The fourth shutdown began in December 2018 and lasted until the beginning of January 2019.

3. Policies that you have been handed down

Presidents inherit the policies of their predecessors. Presidents, for example, will inherit decreased revenue as a result of their predecessors' tax cuts. They also have to oversee social programs that were started by Congress in the past.

4, Catastrophic Occurrences

Some presidents are forced to deal with disasters. President Barack Obama had to deal with the financial crisis of 2008, whereas President George W. Bush had to deal with the 9/11 terrorist attack as well as hurricanes Katrina and Rita. These responses arrived at a reasonable cost. So far, these are the four presidents with the highest deficits. Barack Obama, Donald Trump, George W. Bush, and Ronald Reagan are the four presidents with the highest deficits.

Barack Obama

President Obama's deficits were the highest. Over the course of his eight years in office, his budget deficits totaled $6.781 trillion by the end of his final budget, FY 2017. This represents a 58 percent increase over President George W. Bush's last budget proposal. During the Great Recession, Obama was elected president. He needed to spend billions right away to put a stop to it. He persuaded Congress to add $253 billion to Bush's FY 2009 budget from the economic stimulus package. Over the course of Obama's presidency, the American Recovery and Reinvestment Act added $534 billion to the budget. In its first two years, the Obama tax cut added $858 billion to the budget. Because of decreasing tax receipts as a result of the 2008 financial crisis, the federal government's income has decreased. Presidents Obama and Bush were both subjected to greater required spending levels than their predecessors. Benefits from Social Security and Medicare were eating up more of the budget, and healthcare expenditures were rising as the population of the United States grew older. Obama signed the Patient Protection and Affordable Care Act (PPACA) in 2010, with the goal of lowering healthcare costs. Between 2017 and 2026, the Congressional Budget Office (CBO) and the Joint Committee on Taxation calculated that the bill would cut government deficits by $337 billion.

Donald Trump

In 2017, President Donald Trump was sworn in as the 45th President of the United States. He was expected to have a $6.6 trillion deficit at the end of his four-year term, a 33% increase. The CBO estimated that the COVID-19 pandemic would add $2.2 trillion to the FY 2020 deficit and $600 billion to the FY 2021 deficit As the virus spread across the United States in March 2020, Trump issued a state of emergency. Businesses that were not vital were forced to close, and Americans were advised to stay put. Along with other stimulus measures, Congress enacted the $2 trillion CARES Act. Reduced tax receipts combined with higher stimulus spending resulted in a record deficit.

George W. Bush

In 2001, President George W. Bush assumed office. During his two administrations, he ran up $3.293 trillion in deficits, a 57 percent increase. After the 9/11 attacks, Bush launched the War on Terror, which increased military spending. The Bush tax cuts were intended to combat the 2001 recession.12. However, the cuts did not expire after the crisis ended, causing revenue to be depleted during the 2008 recession. The bank bailout was Bush's response to the financial crisis. The bailout was included in the required budget, where it was dubbed the Troubled Asset Relief Program (TARP).

Ronald Reagan

In 1981, President Ronald Reagan assumed office. During his eight years in office, he generated $1.412 trillion in deficits and nearly doubled the debt. He fought the 1982 recession by passing the Economic Recovery Tax Act of 1981. It lowered the top marginal income tax rate from 70% to 50%, as well as the corporate income tax for small businesses with taxable incomes of $50,000 or less. Reagan also increased government spending by 2.5 percent per year.This includes a 35% increase in the defense budget and a Medicare expansion.

What Budget Deficits Don't Tell You

To make the deficit appear smaller, all presidents can use sleight of hand. Off-budget transactions allow them to borrow from government retirement funds. The debt grows with each year's deficit. However, the overall amount added to the debt by a president each year is frequently greater than the deficit. The Social Security Trust Fund, for example, has been in the black since 1987.Working people have contributed more through payroll taxes than retirees have withdrawn benefits. The surplus of the fund is invested in the United States. Notes issued by the Treasury Department Instead of issuing additional Treasurys, the president can use this cash to reduce the deficit. As a result, the annual deficit is less than the annual debt increase. President Obama, for example, added $8.588 trillion to the national debt, yet his total budget deficits were $6.781 trillion. Similarly, President Bush declared a $3.293 trillion fiscal deficit. Bush, on the other hand, added $5.849 trillion to the national debt. The presidents with the largest deficits are also the ones that contributed the most to the national debt.

Budget Deficits of Presidents by Fiscal Year

Despite the fact that most other presidents have incurred deficits, none have come close to matching the four mentioned above. One possible explanation is that the U.S. economy, as measured by GDP, was much smaller under previous presidents. For example, GDP was just $3.2 trillion at the end of 1981, less than one-fifth of the $16.3 trillion GDP at the end of 2012.17. The table below shows each president's yearly budget deficit since Woodrow Wilson.

Donald Trump was the president of the United States.

Total Actual + Budgeted = $6.612 trillion, an increase of 33%.
In fiscal year 2021, $966 billion is budgeted, plus $600 billion from pandemic impact, for a total of $1.566 trillion.
In fiscal year 2020, $1.083 trillion is budgeted, plus $2.2 trillion from the pandemic, for a total of $3.283 trillion.
$1.98 trillion in fiscal year 2019.
In fiscal year 2018, $779 billion was spent.

Barack Obama was the president of the United States.

Total: $6.781 trillion, a 58 percent increase.
In fiscal year 2017, $665 billion was spent.Despite Trump's proposal for further funding, Congress did not support it.
$1.85 trillion in fiscal year 2016.
In fiscal year 2015, $442 billion was spent.
In fiscal year 2014, $485 billion was spent.
In fiscal year 2013, $680 billion was spent.
$1.077 trillion in fiscal year 2012.
$1.300 trillion in fiscal year 2011.
$1.5 trillion in fiscal year 2010. The Obama Stimulus Act, which was added to the FY 2009 budget, totaled $1.294 trillion and $253 billion.

George W. Bush was the president of the United States.

Total: $3.293 trillion, an increase of 57%.
$1.16 trillion in fiscal year 2009. This sum is derived by subtracting $253 billion from Obama's Stimulus Act from $1.413 trillion.
$459 billion in fiscal year 2008.
In fiscal year 2007, $161 billion was spent.
$248 billion in fiscal year 2006.
$318 billion in fiscal year 2005.
$413 billion in fiscal year 2004.
$378 billion in fiscal year 2003.
$158 billion in fiscal year 2002.

Bill Clinton was the current president of the United States.

A 1% decline in the total surplus.
In fiscal year 2001, there was a $128 billion surplus.
$236 billion surplus in fiscal year 2000.
In fiscal year 1999, there was a $126 billion surplus.
In fiscal year 1998, there was a $69 billion surplus.
$22 billion in fiscal year 1997.
$107.4 billion in fiscal year 1996.
In fiscal year 1995, $164 billion was spent.
$203.0 billion in fiscal year 1994.

George H.W. Bush was the 44th President of the United States.

Total: $1.036 trillion, an increase of 36%.
In fiscal year 1993, the total amount was $255 billion.
$290 billion in the fiscal year 1992.
$269 billion in fiscal year 1991.
$221 billion in 1990.

Ronald Reagan was the 44th President of the United States.

Total: $1.412 trillion, an increase of 142%.
In fiscal year 1989, the total amount was $153 billion.
$155 billion in fiscal year 1988.
$150 billion in fiscal year 1987.
$221 billion in fiscal year 1986.
$212 billion in fiscal year 1985.
$185 billion in fiscal year 1984.
$208 billion in fiscal year 1983.
$128 billion in fiscal year 1982.

Jimmy Carter was the 44th President of the United States.

Total: $253 billion, an increase of 36%.
79 billion in fiscal year 1981.
$74 billion in fiscal year 1980.
$41 billion in fiscal year 1979.
In fiscal year 1978, there were 59 billion dollars.
Gerald Ford was the 44th President of the United States.
Total: $181 billion, an increase of 38%.
$54 billion in fiscal year 1977.
$74 billion in the fiscal year 1976.
In fiscal year 1975, $53 billion was spent.

Richard Nixon was the President of the United States at the time.

Total: $70 billion, representing a 20% increase.
$6 billion in 1974.
$15 billion in fiscal year 1973.
$23 billion in 1972.
$23 billion in the fiscal year 1971.
In fiscal year 1970, $3 billion was spent.

Lyndon B. Johnson was the president of the United States during the 1960s.

Total: $36 billion, an increase of 11%.
In the fiscal year 1969, there was a $3 billion surplus.
In fiscal year 1968, $25 billion was spent.
In fiscal year 1967, $9 billion was spent.
In fiscal year 1966, $4 billion was spent.
In fiscal year 1965, $1 billion was spent.

John F. Kennedy was the President of the United States at the time.

Total of $18 billion, an increase of 6%.
$6 billion in the fiscal year 1964.
In the fiscal year 1963, $5 billion was spent.
$7 billion in 1962.

Dwight D. Eisenhower was the 44th President of the United States.

Total: $15 billion, an increase of 6%.
In the fiscal year 1961, $3 billion was spent.
FY 1960: $0 billion in revenue, with a little surplus.
In the fiscal year 1959, $13 billion was spent.
In the fiscal year 1958, $3 billion was spent.
In the fiscal year 1957, there was a $3 billion surplus.
In the fiscal year 1956, there was a $4 billion surplus.
$3 billion in the fiscal year of 1955.
In fiscal year 1954, $1 billion was spent.

Harry Truman was the President of the United States at the time.

Total: $5 billion, an increase of 2%.
In fiscal year 1953, $6 billion was spent.
In fiscal year 1952, $2 billion was spent.
In the fiscal year 1951, there was a $6 billion surplus.
In the fiscal year 1950, $3 billion was spent.
In fiscal year 1949, there was a $1 billion surplus.
In the fiscal year 1948, there was a surplus of $12 billion.
In the fiscal year 1947, there was a $4 billion surplus.
$16 billion in fiscal year 1946.

Franklin D. Roosevelt was the president of the United States during World War II.

Total: $194 billion, a 186 percent increase.
$48 billion in fiscal year 1945.
In fiscal year 1944, the amount was $48 billion.
In fiscal year 1943, $55 billion was spent.
$21 billion in the fiscal year 1942.
In 1941, $5 billion was spent.
In fiscal year 1940, $3 billion was spent.
In fiscal year 1939, $3 billion was spent.
Fiscal year 1938: $0 billion, with a little deficit.
In the fiscal year 1937, $2 billion was spent.
In the fiscal year 1936, $4 billion was spent.
In fiscal year 1935, $3 billion was spent.
In the fiscal year 1934, $4 billion was spent.

Herbert Hoover was the President of the United States during the Great Depression.

Total of $5 billion, representing a 30% increase.
In the fiscal year 1933, $3 billion was spent.
$3 billion in the fiscal year 1932.
$0 billion in the fiscal year 1931 (slight deficit)
In the fiscal year 1930, there was a $1 billion surplus.

Calvin Coolidge was the president of the United States during the 1920s.

A total surplus of $5 billion, a drop of 26%.
In the fiscal year 1929, there was a $1 billion surplus.
In fiscal year 1928, there was a $1 billion surplus.
In fiscal year 1927, there was a $1 billion surplus.
In fiscal year 1926, there was a $1 billion surplus.
In fiscal year 1925, there was a $1 billion surplus.
In fiscal year 1924, there was a $1 billion surplus.

Warren G. Harding was the president of the United States during World War I.

A total surplus of $1 billion, a 6% drop.
In fiscal year 1923, there was a $1 billion surplus.
FY 1922: $0 billion in revenue, with a little surplus.

Woodrow Wilson was the president of the United States during World War I.

Total: $22 billion, a 775 percent increase.
In fiscal year 1921, there was a $1 billion surplus.
FY 1920: $0 billion in revenue, with a little surplus.
In fiscal year 1919, $13 billion was spent.
$9 billion in the fiscal year 1918.
In the fiscal year 1917, $1 billion was spent.
Fiscal year 1916: $0 billion, with a little surplus.
$0 billion in revenue, with a tiny surplus in 1915.
0 billion dollars in the fiscal year 1914.

Earlier Years

From 1789 through 1913, there was a $1 billion surplus.

Frequently Asked Questions (FAQs)

Is there a president who hasn't had a budget deficit

Individual years with a surplus rather than a deficit have been experienced by several presidents. Between 1998 and 2001, Bill Clinton had four consecutive years of surplus. Most presidents have, however, run a budget deficit every year since the 1960s.

What factors contribute to a budget deficit

A budget deficit, in the most basic sense, is the result of spending more than planned, dealing with unanticipated revenue shortfalls, or a combination of the two. A natural disaster, a recession, unanticipated job losses, or a variety of other events could all contribute to this. In many circumstances, the government budgets for a deficit in the hopes of stimulating the economy through higher spending.

What is the impact of a budget deficit on the national debt

When there is a budget deficit, the national debt grows as well, because the only way to pay for it is to sell additional government securities, which increases the debt. The debt is basically the sum of each year's deficits minus any surpluses.

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