Trillion-dollar deficits are here to stay

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Good morning.

President Trump today will propose a $4.8 trillion budget plan that increases spending for defense systems and space travel, but sharply cuts most social safety net programs. And while his plan would propose eliminating more than $4 trillion in spending over the next decade, budget deficits would continue for the next 15 years.

Meanwhile, as Democrats prepare for the New Hampshire primary, they are competing with an expansive array of huge new spending programs and little apparent concern for the budget consequences.

With the economy in its longest expansion in history and unemployment at historic lows, now would normally be a time for belt tightening. But tight belts have gone the way of bipartisan backroom deals. In today’s era of polarized politics, it’s a good bet that we’ll be seeing trillion dollar deficits for years to come.

More news below.

Alan Murray
@alansmurray
alan.murray@fortune.com