
WASHINGTON (TND) — In a recent CBS News and YouGov poll, only 8% of Americans believe the current state of the economy is "very good," while a substantial 35% describe it as "very bad."
ECONOMIC PERFORMANCE
Inflation currently stands at 3.7%, a notable decrease from the 8.3% reported a year ago, getting closer to the government's goal of 2%.Gross domestic product, which quantifies the total value of goods and services produced in the U.S., has shown positive growth.
The second quarter of 2022 witnessed a dip, with the nominal at $24.85 trillion. However, the second quarter of this year witnessed an increase, reaching a substantial $26.80 trillion in current dollar GDP. The unemployment rate, although slightly higher at 3.8% in the past month, remains lower than the 3.7% rate reported a year ago.
Research and expert analyses suggest that the average American's concerns are not primarily centered on GDP and inflation percentages. Instead, people are focusing on everyday expenses, particularly the rising cost of groceries and mortgage rates. Groceries have seen a 3% increase in prices compared to the previous year.
Meanwhile, mortgage rates have surged to over 7%, up from approximately 6% a year ago. It's worth noting that the Federal Reserve has been raising interest rates to combat inflation, contributing to this rise.
AMERICA'S GROWING DEBT
For the first time, the U.S. gross national debt has reached over $33 trillion. The current deficit, accounting for how much the government owes, stood at $1.5 trillion in the first 11 months of fiscal year 2023, according to the latest data from the Congressional Budget Office. This marks an increase of $0.6 trillion compared to the same period last year.
There are several reasons for this increase. Firstly, government revenues have dropped by 10%, partly due to lower income and payroll taxes collected. Part of the reason for the decrease in taxes collected can be attributed to a decrease in tax liabilities and delayed 2023 tax filings which can be caused by things like natural disasters.
Additionally, government spending has increased by 3%, driven by expenses related to large programs such as Social Security and a rising interest on the public debt, which is largely caused by higher interest rates.
The U.S. government has been running a deficit for over 20 years. This trend is clearly visible in data from the Treasury Department, which illustrates consistent deficits since 2001. The most significant spike occurred during the pandemic, between 2019 and 2021, when federal spending increased by 50%.
While the current deficit is lower than during that time, it remains higher than it was at this point last year.