Tag: U.S. Government Spending
How Excessive Government Spending Leads to Financial Repression
The U.S. Senate passed a $1.1 trillion “bipartisan” infrastructure spending bill last week. Shortly afterward, just 50 senators passed an extremely partisan $3.5 trillion budget blueprint. A good question to ask is where is the U.S. government going to come up with the money to pay for all that spending. The simple answer is...
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Who Is Paying for President Biden’s Spending?
When President Joe Biden was sworn into office on January 20, 2021, the U.S. government’s total public debt outstanding stood at $20,751.9 billion. The chart below shows who Uncle Sam borrowed all that money from on that date:
The $1.9 Trillion “Rescue” Plan May Cause Small Uptick in the Short Term, but Will Only Add to Future Economic Growth Woes
The Congressional Budget Office has issued its 2021 Long-Term Budget Outlook months ahead of its usual schedule. The CBO forecasts that the publicly held portion of the national debt will grow to more than double the size of the U.S. economy during the next 30 years.
Logrolling Fills COVID Relief Bill With Waste
The latest example of how professional politicians generate costly waste on Capitol Hill just became official. Shortly after a number of COVID-19 relief measures passed earlier in 2020 as part of the CARES Act expired, President Trump signed a $2.3 trillion spending bill to extend them. The spending bill combines $900 billion of COVID-19...
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How COVID-19 Blew a Hole in the Federal Budget
The Congressional Budget Office has just released a dismal update of the 10-year budget projections it released just six months ago. The update reveals how much the U.S. government’s fiscal outlook has changed for the worse because of COVID-19. That impact starts with a picture of just how big a hole COVID-19 has blown...
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Bipartisan Proposals for Spending Cuts
Thanks to the coronavirus recession, the U.S. government is on track to borrow more money in 2020 that it will collect in taxes as it cranks up its deficit spending to unprecedented levels. That’s the best estimate of the Congressional Budget Office, which finally weighed in on the fiscal impact of the emergency spending...
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The Financial Virus Will Infect Our Politics
One does not need to be prescient to understand that the consequences of the U.S. government’s financial response to the coronavirus will be momentous. The U.S. Federal Reserve recently announced nine new “facilities” (lending programs) and its balance sheet has surpassed the $6 trillion mark. Even the maniacal asset-buying of the post-financial crisis years...
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Trump’s Budget Proposal Stakes Unique Position for 2020 Election
President Trump has released his budget proposal for the 2021 fiscal year. The first thing to say about it is this: Having just been acquitted in the U.S. Senate impeachment trial on a strict party-line vote in an election year, the president has zero chance of his budget proposal becoming law. In the current...
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U.S. Treasury Secretary Confirms an Inconvenient Truth: Government Has a Spending Problem
It’s not often a cabinet official acknowledges that the U.S. government has behavioral flaws, but that’s exactly what happened on January 23, 2020, when U.S. Treasury Secretary Steven Mnuchin confirmed that the U.S. government has a spending problem.
How Excessive Federal Spending Sparked a Liquidity Crisis
Since mid-September 2019, the U.S. Federal Reserve has been fighting to contain a liquidity crisis in the nation’s money markets that was caused in large part by excessive spending by the U.S. government. That surge in spending was prompted by “the worst budget deal in history” in late-July 2019, which forced the U.S. Treasury...
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