The Biden administration’s relentless reliance on borrowing pushed the gross national debt to over $31 trillion for the first time amid record inflation, rising interest rates and fears of a recession imminent.
U.S. government debt closed at $31.1 trillion on Monday, according to Treasury Department data released Tuesday.
The step comes as the Federal Reserve continues to raise interest rates to tackle the highest inflation in 40 years, and the government borrows money to fund tax cuts even as it sends billions of overseas taxpayer dollars to Ukraine in aid.
“Many of the concerns we’ve had about the trajectory of our growing debt are starting to play out as we increase both our debt and our interest rates,” said Michael Peterson, chief executive of the Foundation. Peterson, who promotes deficit reduction.
“Too many people were happy with our debt trajectory, in part because rates were so low.”
It’s official. The #National debt has now surpassed $31 trillion.
— Peterson Foundation (@pgpfoundation) October 4, 2022
The Congressional Budget Office (CBO), a US federal agency that provides Congress with economic and fiscal analysis, has warned of growing US debt under the Biden administration, warning that investors could lose confidence in the government’s ability to repay what it owes, as Breitbart News reported.
Those worries, the budget office said, could lead to “a sharp rise in interest rates and spiraling inflation.”
The $31 trillion threshold poses a political problem for President Biden, who has pledged to seek a more sustainable fiscal trajectory and reduce federal budget deficits by $1 trillion over a decade.
It also directly contradicts Biden’s assertion in September 2021 that his $3.5 trillion spending program actually costs “zero dollars” due to his safe and capable handling of taxpayers’ money.
“My build back better program costs nothing,” read a post from Biden’s Twitter account.
My Build Back Better program costs nothing.
Instead of wasting money on tax breaks, loopholes and tax evasion for big business and the wealthy, we can make a once-in-a-generation investment in America.
And that adds zero dollars to the national debt.
— President Biden (@POTUS) September 26, 2021
His message argued that the money was currently being “wasted” on “tax breaks, loopholes and tax evasion” and should be redistributed to working Americans as directed by his office.
The Committee for a Responsible Federal Budget estimates that Biden’s debt addiction has added nearly $5 trillion to deficits since he took office.
This projection includes Biden’s $1.9 trillion economic stimulus bill, a variety of new spending initiatives approved by Congress, and a student debt cancellation plan that is expected to cost taxpayers nearly $400. billion dollars over 30 years.
Think Biden’s dire economy can’t get worse for ordinary Americans? Think again.
— Breitbart News (@BreitbartNews) April 3, 2022
Sung Won Sohn, an economics professor at Loyola Marymount University, told AP “it took this nation 200 years to rack up its first trillion dollars in national debt, and since the pandemic we’ve been adding more at the rate of 1 trillion almost every quarter.”
Predicting high inflation for the “foreseeable future,” he said, “when you increase government spending and the money supply, you will pay the price later.”
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