AMERICA IS BANKRUPT. BIDEN HAS DOUBLED THE NATIONAL DEFICIT WITH HIS GLOBAL WAR MACHINE AND TAX CUTS FOR THE RICH
PAY ATTENTION TO THIS NUMBER
Expense On Debt To Surpass Defense, Medicare, Medicaid Spending
NYT’s Stephens: Many People Will Say They’re Worse Off than They Were Four Years Ago Due to Inflation
On Friday’s broadcast of HBO’s “Real Time,” New York Times columnist Bret Stephens stated that many people would say they were better off in 2019 than they are today because of inflation and that while inflation has tapered, it’s doing so after prices spiked and host Bill Maher said that prices for things people buy every week aren’t going down.
Stephens said, “Here is a reality I think a lot of Democrats, including those who really admire Biden, have to confront, which is, if you asked many Americans, were you better off in 2019 — the last full year of the Trump presidency before COVID — or today? They’re going to say 2019. Because their groceries didn’t cost as much money, their gas didn’t cost as much money, their mortgage wasn’t — mortgage rates weren’t as high. That’s just a political fact that Democrats are not getting their arms around. And I hear them say, well, inflation is coming down, for example. Yes, but it went way up, and now it’s tapering. It’s not actually falling. That’s a real problem.”
Maher then said, “Well, and also…it’s chicken, gas, meat, something else that — eggs, the things that people actually buy every week. Those didn’t come down. Not to mention rent.”
Follow Ian Hanchett on Twitter @IanHanchett
Bidenomics: U.S. Budget Deficit Explodes 23% Higher to $1.7 Trillion
The U.S. budget deficit increased 23 percent to $1.7 trillion, an increase of $320 billion, in the year after the Biden administration pushed through the Inflation Reduction Act which it claimed would close the government’s funding gap.
The explosive growth in the deficit came as revenue fell $457 billion from a year ago and expenses decreased by just $137 billion. Total spending for the year came in at $6.134 trillion.
Spending would have been higher if the Supreme Court had not declared Biden’s student loan forgiveness program illegal.
The deficit adds to the U.S. debt total, which the government said earlier this week had reached $33.6 trillion. That is more than $250,000 per household and more than $99,000 per person in the U.S. The Pete G. Peterson Foundation has calculated that if every household in the U.S. contributed $1,000 a month to debt reduction, it would take 21 years to pay down the debt.
Bidenflation Busted the Budget
Much of the increase in the deficit can be chalked up to the runaway inflation sparked by super-sized spending programs—including the Inflation Reduction Act’s $500 billion in new expenditures and tax breaks, the $1.9 trillion American Rescue Plan, and $1 trillion of infrastructure outlays—pushed for by Biden administration.
As a result of inflation, Social Security’s cost-of-living adjustments drove up the program’s cost of $134 billion, for example.
The Federal Reserve was forced to raise interest rates at a record pace and downsize its mammoth balance sheet in an effort to bring down inflation, raising the cost of government borrowing. Outlays for interest on the public debt increased $162 billion, going from $475 billion to $659 billion.
Interest expense as a percentage of GDP rose to 3.3 percent, the highest level since 2001. According to the Pete Peterson Foundation, the U.S. government is spending $2 billion a day on interest payments.
Higher interest rates also lowered the amount of revenue the government receives from the Federal Reserve, adding to the deficit.
The banking failures triggered by higher interest rates resulted in a $101 billion increase in Federal Deposit Insurance Corporation outlays.
On Friday, President Joe Biden asked Congress to authorize aid to Ukraine and Israel, requesting a massive $106 billion in spending the administration claims will go to bolster “national security.” Around $61 billion of that total is for additional spending on aid to Ukraine.
Government revenues in 2023 fell to 16.5 percent of gross domestic product.
The Buck Stops…With The Other Guys
The Biden administration quickly blamed its predecessor for the budget shortfall, attempting to deny responsibility for the fiscal situation of the government.
“This year, the effect of the Trump tax cuts on revenues and deficits is clear,” said a White House official.
The administration continues to claim the economy is doing extremely well despite polls showing widespread rejection of Biden’s leadership on the economy.
“The U.S. economy remains resilient despite global headwinds,” Treasury Secretary Janet Yellen said.
While the consensus among economists no longer calls for a recession in the near term, a recent Wall Street Journal poll showed that the economy is expected to grow slightly less than one percent next year. The Conference Board said this week that it still expects the economy to fall into a “shallow recession” next year.
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