Federal Spending to Top a Record $4 Trillion in FY2017
1. June Unemployment Report Was Better Than Expected
2. Federal Spending to Blow Through $4 Trillion in FY2017
3. What Does the Government Spend Our Tax Dollars On?
4.Even President Trump’s Federal Budget Increases Spending
Both the Congressional Budget Office and the White House Office of Management and Budget announced last week that federal spending will top $4 trillion for the first time ever in fiscal 2017, which began on October 1, 2016 and ends on September 30.
The Congressional Budget Office released its annual “Budget and Economic Outlook: 2017 to 2027” last week in which it projected that total federal spending in fiscal 2017 will hit a record $4,008,000,000,000. That’s up from the previous record of $3.853 trillion spent in fiscal 2016.
While most Americans have no idea how much our out-of-control government spends each year, much less what our enormous annual federal budget deficits are, long-time clients and readers, know this is a topic I focus on and warn about each and every year – and will again today. This is something every American voter should absolutely know about!
Yet before we get to those discussions, I will summarize last Friday’s better than expected unemployment report for June. The strong jobs report had several significant implications for the economy going forward as I will discuss below. Let’s get started.
June Unemployment Report Was Better Than Expected
Friday’s unemployment report for June was a welcome surprise, especially following the weaker than expected report for May. The Labor Department reported at the end of last week that the economy created 222,000 new jobs in June, up from only 152,000 in May – and well above the pre-report expectation of 179,000.
The increase in new jobs in June was the largest in four months and the second highest of the year. Hiring was also revised higher for May and April than previously reported. The pickup in hiring in the spring coincides with a fresh spurt of growth in the economy after a slow start to the year.
The headline unemployment rate rose slightly from 4.3% in May to 4.4% in June, but that was largely because more jobless Americans rejoined the labor force by actively looking for work last month. That’s a good thing.
Hourly pay rose 0.2% to $26.25 an hour in June, the government said. Over the last 12 months, wages have only advanced a modest 2.5% -- up slightly from the rate reported for May, but still well below the usual gains at this late stage of an economic expansion.
Underemployment, which measures people who want to be working full-time but are not, rose to 8.6% in June from 8.4% in May. It‘s still far lower than in prior years but it’s never a good sign to see this measure tick up.