July 12th, 2012
07:26 PM ET

What will it take to slow down the exploding deficit?

Today the treasury reported the government added another $60 billion to the deficit in June. The grand total on money we've borrowed so far this year? 904 billion dollars. But the real headline, the one that worries us the most, is that that number confirms we are on track to hit a $1 trillion deficit for the fourth year in a row.

Meanwhile, Congress seems more content to symbolically vote down the health care law for the 33rd time instead of working together to find a way to avoid America's fiscal cliff at the end of this year.

What's it going to take for everyone to wake up? Dan Gross, Yahoo! Finance editor and former Senior Editor at Newsweek, and economist Peter Morici come OutFront to try and figure it out.

Filed under: Congress • Deconstruct • Deficit • Economy • Politics
soundoff (2 Responses)
  1. btsussan

    One of your guests said that we are going to go off the "fiscal cliff" because nothing will happen in a lame duck session. If that happens, the portfolios of the members of congress will be severely damaged. I doubt they would let that happen to themselves. I suspect that in the eleventh hour, as is tradition, they will pass a bill that simply postpones any mandate to cut and allow business as usual. To appear to be doing something, they will set the continuance date to a week or so after the new congress begins session. The president will have no real option but to sign it. If it looks like he might veto, they will bundle it with something he really needs. Just take a look at the history of the SGR (the "Doc Fix") to see this mechanism in action.

    July 12, 2012 at 11:27 pm | Reply
  2. Joey at Purdue Univ

    I remember hearing Fmr. Sec. O'Neill talking about that conversation re: deficits w. Cheney in Dave Walker's film "I.O.U.S.A." Pretty good flick, I think they got a 30-minute version on YouTube, well worth checking out.

    July 12, 2012 at 9:32 pm | Reply

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