Steve commented on my BWD post that the reason that the federal deficit is growing is due to decreasing federal revenue. Because of Hauser's law, I opined that it must be due to rising spending. I pulled up this chart from the Heritage Foundation to check the facts. What do you think?
In case I lose the link:
However, I am a little mystified at the rate at which the debt is climbing, it does not appear to be fully explained by either the rise in spending nor the fall in revenue. The deficit is climbing at a rate of $2 trillion per year, where as the gap between revenue and debt only recently peaked at $1.5 trillion per year. From CBS News:
Anyone who knows the answer to this mystery, I am anxious to hear from you.
W.C. points out in the comments that I am not the first person to have noticed that the debt is growing faster than the deficit would suggest, pointing out that Zero Hedge and Denninger had commented, without concise conclusion, there seems to be a general consensus that the difference is accounting gimmicks. Adam Freund suggests that it is a failure to account for interest on the debt. Thanks for the further insight.