Fox Business: Biden's Reckless Budget Has Potential to Crush America's Economy, Trigger Massive Recession. Here's Why
Article by Justin Haskins in Fox Business
At the end of a busy news week, just before the start of the Memorial Day weekend, President Joe Biden announced the details of his budget proposal for the next fiscal year.
The timing of the release is telling. When presidents are excited about their policy agenda and confident it will be well received by the American people, they do not release the details hours before most of the country goes on vacation. That is, however, a strategy politicians use when they are trying to avoid negative press.
After taking a careful look at the budget proposal, it is not hard to see why the White House tried to bury the release of Biden’s budget.
As expected, Biden’s budget includes many of the large government spending programs the White House has been pushing for months, including $115 billion for roads and bridges, $225 billion for childcare subsidies, $174 billion for electric vehicles and $109 billion for "free" community college, among many other items.
Undoubtedly, some Americans will find these programs appealing, but what most of the country will not want to hear is that Biden has absolutely no way to pay for his incredibly expensive plan, and that its costly provisions could result in a large-scale economic crash.
The total cost of Biden’s proposal is an astounding $6 trillion, and according to the White House’s own estimates — which are almost certainly too low — the first-year deficit for Biden’s budget is $1.8 trillion.
If the White House’s estimates are accurate, the deficit under Biden’s budget would be larger than every other deficit recorded in American history.
Biden does plan to offset some of his proposed government programs by raising taxes on job-creating businesses and wealthier families and individuals, but the White House’s own estimates suggest that deficits will remain historically high throughout his presidency, despite the tax increases, and for many years more, too.
The Biden administration predicts that from 2021 to 2031, the federal deficit would never drop below $1.3 trillion under his budget plan. That means if the White House has it its way, the Biden presidency will likely end up becoming the most debt-ridden era in our country’s history.
Although very few people in Washington appear to be interested in taking the soaring national debt seriously, there are good reasons to believe that the high levels of debt proposed by Biden could cause a large and potentially sustained economic catastrophe.
There are many problems with creating large amounts of new money, but perhaps the biggest is that it can cause inflation and devaluation of the currency now in circulation. In other words, the dollars currently in your bank account will become less valuable as the Fed creates more money.
When economies are healthy and growing rapidly, they can absorb some inflation without much damage, but the unprecedented money-printing that has occurred throughout the COVID-19 pandemic has been so extreme, it has caused inflation to increase too rapidly for the economy to keep up.
In April, inflation increased by 4.2%, according to the ......
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