The Shrinking Deficit Now Faces A Costly War Against ISIS

“The federal government ran a budget deficit of $486 billion in fiscal year 2014, the Congressional Budget Office (CBO) estimates — $194 billion less than the shortfall recorded in fiscal year 2013, and the smallest deficit recorded since 2008.  Relative to the size of the economy, that deficit — at an estimated 2.8 percent of (GDP) — was slightly below the average experienced over the past 40 years.”  Furthermore, “the size and speed of the decline has come as a surprise to many forecasters.  As recently as February 2013, this year’s deficit was expected to be 3.7 percent of GDP.”  Meanwhile, “with the war against ISIS off to a rocky start, there are signs that the Obama administration is getting ready to up the ante substantially on weaponry, manpower and aid to allies — at a cost of an additional $30 billion to $40 billion a year.