The U.S. deficit continues to inch closer to $20 trillion and as Scott Martin, chief market strategist at United Advisors told FOX Business Network’s Neil Cavuto, it’s because of the endless cycle of money flowing in, and more money flowing out.
“The Obama administration says, ‘Mr. and Mrs. America you need to be comfortable, or at least conscious of your personal situation, you need to take responsibility for yourself and pick yourself up,’ but the government doesn’t even do that,” Martin said.
To his point, the federal deficit in March clocked in at $108 billion, while the fiscal year-to-date figure sits at $461 billion, according to figures from the U.S. Treasury Department.
Martin said if the trend continues, it will pinch American pocketbooks even harder.
“What’s going to happen is not so much that everything is going to fall apart in the United States, but you’re just going to see tax rates go up at an alarming rate. That chokes off business growth, that chokes off your take-home pay, and that will eventually hurt your standard of living,” he said.
The solution? Martin said the best outcome might be from the presidential election come November.
“If we don’t have some reform or true balancing of the budget, which we haven’t really seen since the Clinton years. I mean, I’ll tell you, we’re going to have hell to pay,” he said.