Posted on 09/05/2023 9:16:43 PM PDT by SeekAndFind
Government spending during the pandemic caused a $3.1 trillion deficit in 2020 and a $2.8 trillion deficit in 2021. It was the most expensive campaign debt in history, and paying it off caused a massive spike in inflation.
Inflation is moderating — somewhat. And in 2022, the federal budget deficit dropped by the largest amount in history; from $2.8 trillion to a little less than $1 trillion.
But in 2023, instead of continuing to drop, the deficit nearly doubled to a projected $2 trillion. This despite steady, if unspectacular, growth in the economy.
This is counterintuitive, according to the Washington Post.
The surge in red ink has confounded many economists’ expectations. Typically, deficits contract when the economy grows, because businesses and consumers owe more in taxes and the government does not need to spend as much to protect those who have lost their job. Then deficits normally expand again in downturns, as those factors go into reverse. And yet the current surge in the deficit is coinciding with a period of unusually strong economic growth, amid historic lows in unemployment and robust corporate profits.
“The deficit will basically double from 2022 to 2023,” said Marc Goldwein, senior vice president of the Committee for a Responsible Federal Budget. “This should prompt a serious evaluation of federal policy going forward, though I worry it won’t.”
Lower tax receipts and higher interest rates, forcing bigger interest payments, have resulted in the budget deficit skyrocketing.
(Excerpt) Read more at pjmedia.com ...
The “weird, freakish thing” is Joe Biden and Republicans in Congress racing each other to the edge of the fiscal cliff to see who will jump first.
Unfortunately, the Uniparty having no regard for the future of the country, for the country’s fiscal health, or the well-being of its citizens is not a “weird, freakish thing.” It is, sadly, just business as usual.
Uh, they are cooking the numbers. And to not see a causation between spending and printing money and inflation, you have to be a fool.
Our country is being poisoned by an evil, corrupt,Godless monster that is Democrat and quisling Republicans!
Those who could save America dither and posture while the death rattles prove that the nation is practically dead. The Constitution can’t be of any further use as our enemy has used it as toilet paper.
IN short, the USA has become ungovernable and action must be taken to retake it by forces of the right.
A benevolent despot is needed to shape Americaanew. Those who brought us to this fate must be punished.
Maybe none of those things are true.
Reports are that by far most of the new hiring is among new foreigners to the country, be they legal or not.
How much do you think all these new workers, the ahem, “disadvantaged” people are paying in federal/state/local tax? I’d wager it less then most of them are receiving in federal/state/local freebie benefits - so a net loss and federal/state/local revenue shrinks rather than grows.
40% of all Medicare costs are borne by the General Fund. An aging US population, which sees 10,000 baby boomers reaching 65 every day and will continue to do so until 2030 means that Medicare costs will continue to rise. Our debt servicing costs, boosted by increased interest rates, will approach $600 billion this year, and will continue to rise.
Covid spending added trillions to the national debt overnight, which increased inflation and interest rates that caused exploding debt servicing costs and the national debt of now almost $33 trillion. Budget deficits matter. Biden’s spending, aided by the Republicans, have put us on an unsustainable course. And throw in the proxy war in Ukraine.
Revenue has not kept pace with the spending. We have 44 million Americans between 16 to 64 who are not in the workforce. And we have brought in over 6 million illegal aliens since Biden took office. They will compete against Americans for jobs along with the 1.1 million legal permanent immigrants who enter annually. No doubt we have a huge underground economy that is not taxed directly. Productivity has declined. We are in a downward spiral. Biden’s answer is to spend and tax more.
Several times here in comment exhcnages, I have experienced Freepers on a conservative forum say quite the same thing. More debt, and see who breaks first, as regards contending with other nations.
The profligacy of this moment in history is astounding. Innumeracy abounds, while people pretend they can "manage" fiscal issues.
And then they find out they cannot.
It is my contention that the pandemic, the many wars since 2001, the pushing of climate change and the "gender" controversies are all interlocking, making rich the few while beggaring the many. They are hoaxes perpetrated with the full cooperation of the mainstream media.
The individual conservative's best response is to walk away from much, save and disengage.
Ask anyone in the trucking industry how this works. Between hours of service regulations and emission control mandates, a trucker today drives fewer miles at a higher cost than ever before.
I’d agree. It used to be that illegals would apply for an individual tax number (ITN) and put as many dependents as they could on any W-4 withholding form if they had a job where the employer had to withhold for taxes. Virtually no taxes are paid and it was a crap shoot if the illegal would file taxes at all, anyway.
[Maybe none of those things are true.]
Wouldn’t surprise me if you’re correct.
FauciFlu was terribly-damaging to the economy. Of a good portion of the world as well.
The COVID scam wasn’’t only devised and used to break the election system and rig the 2020 election.
It also provided cover for the biggest theft of taxpayer money since the Barack Obama scam of 2008-2009.
When we shipped our high paying, tax paying jobs out of the country, what did we think was going to happen?
Time to repeal the 17th Amendment and eliminate the Senior Executive Service via a Convention of States.
>Maybe none of those things are true.<
Maybe. I wonder if the analysis was done using the initially reported DOL numbers, or the months later revised numbers which ALWAYS went against the narrative.
There has been 27 consecutive months of jobs numbers being revised downward, economic growth data being revised downward, and unemployment rate being revised upward.
EC
This despite steady, if unspectacular, growth in the economy.
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Horse apples
More gaslighting
Every business that I go into, especially contractors across the board, is they cannot find anyone that wants to work. They can’t compete with the guberment handouts.
I was looking for summer workers on my ranch. Posted in with the school with description of work, fixing fence, repairing pens, etc, only one person applied, my nephew. In my day I worked almost everyday of our “summer break “. Now a days the youngsters sit in their rooms play games and are on the phone.
No real life experiences to mold future workers.
bkmk
This is The Great Repricing I saw coming in 2016.
You heard a huge flush in 2020. It was the sound of way too much liquidity being forcibly dumped into the bowl of the economy — right now, 80% of the dollars EVER created since the Fed was born in 1913 were created out of thin air after 4/1/2020.
Enjoy the spiral. You have two to five years before your government either IS the economy or the 30% of folks depending on the government for every meal don’t have working EBT cards...
They were paying $300 Billion 5 years ago to service $18 Trillion at TIC of around .8%. They are paying quadruple that rate now on $5 Trillion more in debt. Interest on the debt is about to become the largest line item on the budget, just like the banks wanted it.
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