Uncle Sam's spending spree: The US federal government spent an unprecedented amount last year
Uncle Sam spent a lot of money last year. About $6.5 trillion in US federal spending to be exact. That figure is not far from double what the federal government collected in revenue from taxes — meaning that the US federal deficit broke through the $3 trillion mark for the first time in history.
Much of that deficit can be attributed to COVID-19 relief efforts. Federal spending jumped ~45% compared to FY2019, mostly thanks to support for businesses, unemployment insurance, stimulus checks and other forms of COVID-related aid. Revenues decreased by 3%.
I O U $27 trillion
If you're not that familiar with government finances you might be wondering where they got the cash after coming up a little short. The simple truth is that the government borrowed it, adding a few trillion to its already enormous tab (AKA the national debt) — which at the end of 2020 was about $27 trillion and change.
That works out to about $82k for every man, woman and child in the United States. As alarming as that number sounds, the US gets about as good a rate on its debt as any borrowing institution in the world, and it's hard to make a case for frugality in the middle of a global pandemic.
