Reports from the Associated Press have stated that the federal budget deficit has risen to more than $450 billion, the highest amount ever recorded in history. The high deficit surpassed 2004’s record and has been attributed to a range of economic issues including high unemployment, bank failures, and financing a war. Analysts have predicted that the current rescue plan that is in place to assist the United States with an economic crisis will increase the number even higher by the end of the next fiscal year. The deficit has been stated to possibly reach $700 billion within the next year.
The state of the economy has been a major focus of the current election campaigns, with candidates of both the Republican and Democratic parties being asked to provide answers for how they plan to help bring the country into a state of actual recovery as well as improve foreign policy. The deficit is said to pose a major challenge for the upcoming president who will inherent the financial burden and other issues attributed to the current Bush administration.