A few months ago before Google Bard was rebranded as Gemini, I asked it several questions to assess the state of AI.

Like any “expert” the answer from an AI needs to be verified by human intelligence and may include made up “facts.”

This example is a strictly factual question about a specific document, but note that the AI inserted unrequested value based evaluations. Such judgements by the AI reflect accepted opinion, but accepted by whom? Sometimes it is a common consensus and other times it is a fringe bias.

I asked this question because I noticed that in the Biden Administration’s first budget the federal deficit was about equal to federal payments to states and municipalities. This raised the issue to me about the policy of the federal government essentially borrowing money for states to spend.

Question

In the most recent federal budget created by OMB, what is the total amount of transfer payments from the federal government to states and localities? Also, what was the projected federal deficit?

AI Answer

According to the Analytical Perspectives: Budget of the United States Government, Fiscal Year 2023, the total amount of transfer payments from the federal government to states and localities in the most recent federal budget created by OMB is $818.4 billion. This includes grants, subsidies, and other payments to state and local governments for a variety of purposes, such as education, healthcare, and infrastructure.

The projected federal deficit for fiscal year 2023 is $1.4 trillion. This means that the federal government is expected to spend $1.4 trillion more than it collects in revenue.

The federal deficit Is projected to increase in the coming years, due to a number of factors, including the aging population, rising healthcare costs, and tax cuts. The Congressional Budget Office (CBO) projects that the federal deficit will reach $2.7 trillion by 2033.

The federal deficit Is a concern because it can lead to higher interest rates, which can make it more expensive for the government to borrow money and can also slow economic growth. The CBO projects that the federal debt will reach 118 percent of GDP by 2033, which would be the highest level ever recorded.

There are a number of things that can be done to reduce the federal deficit, such as raising taxes, cutting spending, or both. However, any changes to the federal budget would need to be approved by Congress and the President.