Nov 14, 2019

U.S. budget gap hits $134.5 billion, up 34% in a year

Photo: Mark Wilson/Getty Images

The U.S. budget gap grew to $134.5 billion in October, up roughly $34% from the same time last year, Bloomberg reports.

The big picture: The federal government ended the 2019 fiscal year with the biggest deficit — $984.4 billion — we've seen in seven years. The widening gap comes as a result of continued spending increases and dwindling receipts. The deficit marks the largest October shortfall since 2015. Income also dropped by 2.8% last month from a year earlier.

  • Federal Reserve Chairman Jerome Powell warned Congress on Wednesday the "federal budget is on an unsustainable path" and suggested that if not addressed, the deficit could hinder Congress' ability to fend off future recession.
  • The Congressional Budget Office estimated an October deficit of $133 billion as of last week.
  • The Treasury predicts the federal deficit will top $1 trillion during the 2020 and 2021 fiscal years. The new fiscal year begins each October.

Reality check: The trillion-dollar deficit projections stand in stark contrast to President Trump’s 2016 campaign promises that he would eliminate deficits with spending cuts and growth in revenues from a stronger economy, writes AP.

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  1. Global: Total confirmed cases as of 5:45 p.m. ET: 5,763,122 — Total deaths: 358,235 — Total recoveries — 2,389,735Map.
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Minnesota activates National Guard amid fallout from George Floyd death

A portrait of George Floyd hangs on a street light pole in Minneapolis. Photo: Stephen Maturen/Getty Images

George Floyd, 46, moved to Minnesota to improve his life and become his "best self," but instead, he is dead because of Minneapolis police.

The latest: Minnesota Gov. Tim Walz declared a state of emergency and activated the state's National Guard in response to violent clashes over the past two days between police and protesters in the Twin Cities.

Trump signs executive order targeting protections for social media platforms

President Trump signed an executive order on Thursday designed to limit the legal protections that shield social media companies from liability for the content users post on their platforms.

What they're saying: "Currently, social media giants like Twitter receive an unprecedented liability shield based on the theory that they are a neutral platform, which they are not," Trump said in the Oval Office. "We are fed up with it. It is unfair, and it's been very unfair."