The hard truth is that we need to rein in runaway government spending.
For all of President Joe Biden’s claims about deficit cutting, new data actually shows a gap double This year – a whopping $2 trillion, the most ever outside of a recession or national emergency.
Such demonic red ink not only haunts future generations from today’s excesses; This leads to huge interest costs that crowd out really necessary expenses, such as for defence.
As Congress and the White House race to craft a budget (and avoid a government shutdown) for the fiscal year that begins in two weeks, it is imperative that they reduce spending and rein in the deficit (In fact,,
How dangerous is the current nut?
Consider: Experts saw a massive $500 billion negligence hole in 2015, during the Obama years; it’s snow four times That amount, after less than a decade.
As the Congressional Budget Office reports, the deficit has averaged 3.3% of GDP over the past half century; The $2 trillion in IOUs has more than doubled this year, at 7.6%, up from 5.2% last year — and higher than at any time since World War II, the COVID shutdowns and the 2008 financial crisis. Except during the fall.
Interest payments in the first 11 months of the year have increased by 30% from 2022.
President Biden delivers remarks at a news conference at the White House on September 15, 2023. sipa usa
At a whopping $644 billion, they are almost equal to the $692 billion spent for national defense.
The mind-blowing statistics clearly prove that the spring debt-ceiling fight was a sad joke.
At the time, Biden wanted to raise the cap (if not eliminate it altogether). No cost cutting at allEven though its unfunded outlay will further increase the deficit.
His idea was to increase taxes.
But this would only slow down the economy and cause losses. All Americans.
Republicans got him to agree to modest curbs on spending growth next year, but that will do little to get the massive deficit under control.
There’s no doubt that spending is the problem: according to the Committee for a Responsible Federal Budget, outlays are up 16% from last year.
Yet the trillions of dollars that Biden and fellow Democrats have added since he took office have not only increased the red ink; They also provoked inflation.
This forced Uncle Sam (like everyone else) to cough up more for everything it bought – including Medicaid, Medicare and Social Security.
and forced the Federal Reserve to cut interest rates, making government borrowing even more expensive.
Biden’s claim about deficit cutting was always an ugly lie: He wants to take credit for it predetermined Fallout from unprecedented pandemic borrowing.
Yet the truth is becoming painfully clear: Their massive losses are not sustainable.
Pray that next year’s budget is the first to seriously curb spending In right terms Get a handle on America’s debt nightmare.
Source: nypost.com