In the years following the COVID pandemic, the federal government dramatically ramped up spending. What has been touted as “Bidenomics” is a set of policies focusing on increasing deficit spending. Hardliners in Congress have long warned the federal government not to spend more than what is brought in via taxes.
But the current administration appears to be intent on advancing greater and greater spending plans, particularly to combat climate change. Congressional leaders have been battling on various spending bills for the upcoming fiscal year. Some experts warned of a looming government shutdown, as both parties refuse to forge a deal. Now, another major issue is dominating the spending debate–one that directly affects most Americans.
From Just the News:
Sustained deficit spending by the U.S. government helped push the national debt up to a jaw dropping $31.38 trillion in 2023, according to U.S. Treasury data. Fiscal watchdogs are now predicting that the interest alone on that debt will soon eclipse both entitlements and defense spending as a major component of the annual budget.
Ongoing deficit spending, pushed in 2020 and continued in this administration, has brought the national debt to $31.38 trillion. The interest on this debt is actually higher than the cost of defense spending and programs like Medicaid and food stamps.
Part of this unprecedented problem is related to high interest rates. The Federal Reserve has been struggling to stave off a recession thanks to inflation caused by Bidenomics. It has increased interest rates over recent years, making debt payments high.
Mortgage rates have been heavily impacted by this. Under the Trump administration, the average rate for a 30-year mortgage was 3.7%. Today, under the Biden administration, that rate is around 6%–an all-time high.
Credit card interest rates are above 20%.
The government will be spending more on interest on its debt than it will be spending on actual programs, including our military. Much like a family drowning in credit card debt, it is unlikely the government will be able to climb out of this hole.
The burden of this debt will carry over for generations. It is possible future administrations will be unable to provide needed services, like infrastructure or other investments because they will still be paying back this debt.
Critics have been merciless in their attacks against the government. Many of those in Washington passing these deficit spending bills won’t even be alive to feel the fallout of their decisions. Many Americans, including their children and grandchildren, will be.
And they will face economic struggles unheard of in recent memory.
- The federal government’s debt reached above $31 trillion.
- The interest payments on the debt exceed defense and entitlement spending combined.
- Deficit spending skyrocketed in 2020; the Biden administration has only continued this trend.
Source: Just the News