AFP via Getty Images |
In addition to a world set aflame from the Middle East to Ukraine and beyond, Joe Biden and Kamala Harris have saddled their successors in office with a fiscal nightmare: Public debt is set to top 100% of US GDP this year, for the first time since just after World War II.
And what on earth do we have to show for Biden’s gargantuan spending sprees?
Nothing meaningful, other than elevated prices that continue to punish Americans (even as the White House and its allies in the press coo about softening inflation).
Oh, and he did hire tens of thousands of new IRS agents . . .
Rewind the tape to early 2021, when Joe and Kam came into office.
The economy, devastated by COVID, was starting to put out green shoots, with budget deficits driven up by pandemic-relief spending set to return to normal levels.
Well, until Joe pushed through his near-$2 trillion “American Rescue Plan” — which touched off the inflation conflagration, costing typical families more than $10,000.
Add in $620 billion in student-loan bailouts, a $440 billion “infrastructure” bonanza, the CHIPS Act, $1.4 trillion in new outlays rushed through in omnibus appropriations bills and so on, and you get some eye-watering results. --->READ MORE HERE
NY Post composite |
The presidential campaign season is once again turning politicians into pandering game show hosts, promising voters huge tax cuts and spending expansions with no regard to the debt crisis these policies will accelerate.
Budget deficits are set to exceed $2 trillion this year — despite relative peace and prosperity — and then surge to $4 trillion within a decade under current policies.
For the first time since the end of World War II, the federal debt will top 100% of the gross domestic product.
The impending completion of the Biden-Harris administration brings an opportunity to assess their role in these rising deficits.
Joe Biden and Kamala Harris surely inherited an economic and fiscal mess. President Donald Trump had already signed legislation and executive orders adding $4 trillion to 10-year deficits before the bipartisan pandemic response added $4 trillion more.
Post-pandemic toll
That said, as Biden-Harris entered office, the pandemic-ravaged economy was finally reopening and Americans were returning to work. Thus, the Congressional Budget Office (CBO) forecast that budget deficits — which had temporarily leaped to $3 trillion — would drop back to the pre-pandemic $1 trillion levels as the pandemic aid expired.
Instead, the administration immediately disregarded the advice of even liberal economists and pushed through President Biden’s $1.9 trillion American Rescue Plan.
Because CBO had calculated that the recovering economy was only $420 billion short of its operating capacity, this $1.9 trillion bazooka wildly overshot its economic stimulus purpose.
Consequently, just as economists warned, the excessive stimulus overheated the economy and contributed three more percentage points to an inflation rate that was already rising due to past pandemic stimulus and supply constraints.
Overall, this inflation cost typical families more than $10,000.
Moreover, the American Rescue Plan’s individual expenditures were largely unnecessary. This pent-up Democratic wish list included $350 billion to bail out state budget deficits that did not actually exist, a bloated union pension bailout, and a decade’s worth of additional federal school funding — all sold to the public with added unemployment benefits, taxpayer rebates and child tax credits. --->READ MORE HEREFollow link below to a relevant story:
+++++Two data points explain why voters hate the Biden-Harris economy+++++
If you like what you see, please "Like" and/or Follow us on FACEBOOK here, GETTR here, and TWITTER here.
No comments:
Post a Comment