United

Donald Trump

2024

Biden

<p>As the United States approaches a crucial presidential election, the budget deficit for the fiscal year 2024 has reached new heights, raising concerns about the viability of the public finances of the world’s foremost power. Indeed, with a debt that continues to grow despite rising tax revenues, discussions about budget management are at the heart of the political debate.</p> 
<h2 id="h-the-historic-deficit-and-soaring-debt-costs">The historic deficit and soaring debt costs</h2> 
<p>The <a href="https://www.cointribune.com/la-dette-americaine-senvole/" target="_blank" rel="noreferrer noopener">budget deficit of the United States</a> for the fiscal year 2024 has reached $1,833 billion, or 6.4 % of the gross domestic product (GDP), a significant increase from the $1,700 billion recorded in 2023. According to the U.S. Department of the Treasury, this increase is primarily due to the significant rise in debt service, which has climbed by nearly a third. “The sharp increase in interest rates over the year has significantly burdened the financial strain of the national debt,” <a href="https://www.latribune.fr/economie/international/etats-unis-le-deficit-budgetaire-grimpe-en-2024-1009290.html" target="_blank" rel="noreferrer noopener">noted</a> the Treasury Department. However, tax revenues have indeed increased by 11 % this year, driven by an economic recovery and substantial wage gains, but they have not been enough to offset the impact of high rates.</p>
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<p>The overall context of this situation also relies on the massive public expenditures incurred to support the economy after the Covid-19 crisis. Indeed, the United States, after reducing its deficit in 2022, has seen its financial situation deteriorate again in 2023 and 2024, with expenditures reaching $6,752 billion. The Biden administration is trying to reassure and emphasizes its investments in infrastructure and renewable energy. Moreover, it insists on the necessity of maintaining long-term growth. However, the magnitude of the deficit remains a major concern as elections approach.</p> 
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<h2 id="the-political-and-electoral-stakes-surrounding-the-deficit">The political and electoral stakes surrounding the deficit</h2> 
<p>With less than two weeks to the presidential election, the budget deficit has become a key issue in political campaigns. The candidates, Kamala Harris for the Democrats and Donald Trump for the Republicans, are passing the blame for the current situation. A member of the Biden administration pointed to the tax cuts implemented by the Republicans. He accuses them of having widened the deficit through the reduction of state revenues. For his part, Donald Trump openly criticizes the excessive public spending of the current administration and promises to restore the economic greatness of the United States by reviving key industries such as automotive.</p> 
<p>These political exchanges foreshadow the long-term implications for the American economy. While the Fed has begun to lower interest rates to relieve financial pressure, the impact of these decisions will likely not be visible for several months. However, managing the deficit remains a delicate topic, not only for the national economy but also for the international relations of the United States, particularly in terms of aid to Ukraine or trade relations. In this tense context, voters will soon have to choose between radically opposing budgetary approaches, with potentially heavy consequences for the country’s economic future.</p>  
<p><em>The continued rise of the American deficit places the country at a crossroads. As the presidential election looms large, the next administration will face major challenges in restoring public finances and continuing efforts for economic recovery. The upcoming months are likely to be critical for both the budgetary future of the United States and their position on the international stage. We hope that the recovery of public finances will not come at the expense of extreme regulation of cryptos in general, and particularly of <a href="https://www.cointribune.com/bitcoin/" target="_blank" rel="noreferrer noopener">Bitcoin</a>.</em></p>

Record deficit in the United States : A ticking time bomb as elections approach !

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