Staff Reports
The Congressional Budget Office announced that the federal budget deficit is on track to balloon to a staggering $2 trillion this year, and there’s plenty of blame to go around. Leading the charge into fiscal irresponsibility stands none other than President Biden, whose generous student-loan forgiveness plans are dragging America further into red ink.
While the mainstream media will have you believe the economy is “humming along,” that narrative paints a misleading picture. Sure, economic growth and unemployment numbers may have seen a brief uptick, but that’s hardly surprising given the unprecedented influx of migrants, legal and otherwise, entering the country. The CBO says these higher-than-expected figures are here to stay, not because of sound economic policies, but thanks to the sheer volume of newcomers stressing the system.
Feds to run $2 trillion deficit this year with Biden’s student loan reprieve partly to blamehttps://t.co/1OHf97HDQT pic.twitter.com/0TPq1Ou5xD
— The Washington Times (@WashTimes) June 19, 2024
Inflation, that persistent economic drain, remains a thorn in the side for everyday Americans trying to make ends meet. The CBO report reveals that the deficit estimate has surged by $400 billion in just four months. The culprits? Excessive war spending for Ukraine and Israel, runaway Medicaid costs, and President Biden’s sweetheart deal to write off a hefty chunk of student loan debt.
Federal debt held by the public will soon hit 99% of the GDP this year, possibly reaching a jaw-dropping 120% within the next decade. For context, that breaks previous records set during World War II. Yet, the Biden administration and its allies continue their lavish spending with zero regard for future generations. CBO Director Phillip L. Swagel’s brief summary of future projections suggests the debt spirals skywards with no end in sight.
And let’s not forget, these grim financial realities are unfolding in the heat of a political campaign season. It’s evident the future of the 2017 tax-cut package, signed into law by President Trump and crucial for economic freedom, hangs in the balance. Voters, bombarded by rising costs and dwindling purchasing power, prioritize inflation over all else, a sign of the times.
As 2024 approaches, the CBO paints a bleak outlook. Neither the personal consumption expenditures price index nor the consumer price index shows any sign of significant improvement. Despite a GDP growth expected to hit 2% this year, fueled by hordes of new immigrants, structural issues remain. This so-called “resilience” hinges largely on millions of foreign nationals entering the U.S., many without legal status but allowed in by the Biden administration’s own rules.
Adding to the mess, the massive influx of these immigrants introduces complex fiscal challenges. They might boost the GDP by $9 trillion over the next decade, but it’s a double-edged sword, driving up inflation and compounding government expenses, particularly through increased interest costs on national debt. While top-line numbers might look good, the average worker, especially those with minimal education, face wage suppression due to increased labor supply.
On the fiscal front, the deficit situation is dire, with CBO predicting a relentless surge in federal spending, averaging 4% increases annually over the next decade. Social Security, Medicare, and President Biden’s ill-conceived student loan forgiveness programs will saddle future generations with a crushing debt burden.
To top it all off, interest payments will set new records. The U.S. government will spend nearly $900 billion on interest this year alone, climbing to an astronomical $1.7 trillion by 2034. For the first time since records began in 1940, Uncle Sam fritters away such a high ratio of GDP on interest payments, rather than productive investments.
And let’s not forget the student loan forgiveness debacle adding tens of billions to this year’s deficit, a move that prioritizes short-term political gains over long-term fiscal responsibility. America’s financial future is being mortgaged away, one misguided policy at a time.
