The president is now bragging about having reduced the deficit!
“We’re on track,” he says, to have “the biggest single-year drop in American history.”
It’s true. But totally misleading.
President Joe Biden’s deficit will be down from last year, but that’s only because he spent gargantuan amounts of money then.
For once, the media did not take his words at face value. Even CNN did a “fact check” quoting a Moody’s Analytics executive saying, “The actions of the administration and Congress have undoubtedly resulted in higher deficits, not smaller ones.”
Much higher. Despite record tax revenues from booming stock markets last year, our national debt will increase by about $1 trillion.
Unfortunately, most people don’t care. These big numbers are too abstract. It won’t end well.
During Barack Obama’s presidency, I complained about his irresponsible spending. Obama practically doubled our debt. What a relief it was when Donald Trump was elected! He looked at the budget and said, “There’s a lot of grease in there!” He promised he would “cut spending, big league!”
Foolishly, I believed him. But Trump cut almost nothing. He boasted that his military spending had set “an all-time record”. Congress was partly to blame, but under Trump our debt grew by another third.
Never trust politicians.
Last year, Biden made things much worse. He signed a $1.9 trillion COVID-19 relief bill, saying he was “giving the people of this country, the workers, the middle class people, the people who built the country, a chance to fight”.
It included $1,400 stimulus checks, increased unemployment benefits and increased child tax credits.
Then he added the $1.2 trillion “infrastructure” bill, which included billions in state and local aid, billions for schools, billions for small businesses, $110 billion for infrastructure and $66 billion for Biden’s favorite money-losing Amtrak grant.
Biden wanted to spend even more, but his Build Back Better Act didn’t pass. Thank you, Senator Joe Manchin. You saved us $2.2 trillion and made our government a little less irresponsible.
Biden’s recent deficit-cutting boast didn’t mention he even wanted to increase the deficit After. Last week he blamed taxpayers for $5.8 billion in debt to people who attended Corinthian Colleges. Now he wants taxpayers to pay hundreds of billions more so other students don’t have to pay.
Biden also boasted of a “record 6.7 million jobs created last year — the most in the first year of any president in American history.” But the president did not create those jobs.
Panicked by COVID, governments shut down so many businesses that they raised the unemployment rate to 14.7%. Biden then further slowed hiring by giving non-workers extended unemployment benefits and stimulus checks. For many people, this meant that they could earn as much, or even more, while collecting unemployment. No wonder they haven’t returned to work.
Finally, most benefits have run out, so of course now we have job growth. It’s not because of anything good that Biden did.
Under Biden, Trump and Obama, federal spending nearly doubled.
Hope for future spending accountability is dim. “Biden’s 10-year outlook would rack up another $14.4 trillion in deficits,” Bloomberg reports. More money is printed, inflation worsens and the national debt rises.
Politicians need to make real cuts to make a difference to our debt.
Budget cuts are necessary to give our children hope for a prosperous future. But Biden won’t.