National debt

U.S. budget deficit up nearly 40% from last year

Photo: Mark Wilson/Getty Images

The Treasury Department says the U.S. budget deficit has increased to $738.6 billion in the first 8 months of the fiscal year — up $206 billion from the same time last year, according to a report from the Congressional Budget Office.

Why it matters: The deficit has continued to grow under President Trump as a result of Republican tax cuts and increased government spending, reports Bloomberg. Even increased customs revenue stemming from tariffs — which Trump falsely insists is being paid for by China — has failed to bridge the widening gap. The deficit is expected to reach $897 billion by the end of the year.

Go deeper... Chart: How the U.S. budget deficit has fluctuated since the 1980s

How student debt causes lower incomes

Illustration of a graduation cap being weighed down by a ball and chain as the tassel.
Illustration: Aïda Amer/Axios

A new paper looking at student loans suggests that debt does come with more than just interest costs.

What they did: Three researchers, all of them business school professors, managed to persuade Equifax to give them detailed financial data on thousands of borrowers who had student loans from National Collegiate. When the company couldn't prove that it had chain of title, the borrowers' debts were discharged.