WASHINGTON – The federal deficit has topped $1 trillion for the first time ever and could grow to nearly $2 trillion by this fall, intensifying fears about higher interest rates, inflation and the strength of the dollar.
The deficit has been widened by the huge sum the government has spent to ease the recession, combined with a sharp decline in tax revenues. The cost of wars in Iraq and Afghanistan also is a major factor.
The Treasury Department said Monday that the deficit in June totaled $94.3 billion, pushing the total since the budget year started in October to $1.09 trillion. The administration forecasts that the deficit for the entire year will hit $1.84 trillion in October.
So what’s a trillion?
- A trillion is a million times a million or a thousand billion.
- A trillion is the combined capitalization of Google, Apple, Microsoft and Intel plus enough to buy an iPhone for everyone in China and India.
- A trillion is enough to give $325.50 to everyone in the USA each year for the next 10 years.