Understanding Federal Spending Under Biden’s Administration
Federal spending is a critical aspect of any administration, and under President Joe Biden, this spending is expected to significantly increase. It’s a continuation of the federal spending trends under both Obama and Trump, albeit with a more focused approach on direct assistance to citizens.
Similarities with the Past
Compared to the previous administrations, Biden’s federal spending may look somewhat similar to Obama’s in terms of the allocation of funds. The concern is that liberals might focus their criticism on the military spending, while often overlooking the non-military expenditures.
A more sensible perspective would be to view federal spending as a tool to support citizens in need rather than squandering resources on personal expenses or unnecessary luxuries like an extravagant vacation. Biden plans to spend like a mature and responsible leader, rather than like Trump, who spent lavishly and irresponsibly.
Projected National Debt and Economic Implications
It is projected that Biden and the Democratic Congress will likely add another 10 to 20 trillion dollars to the national debt, bringing the total to 40 to 50 trillion dollars during his term in office. This extensive increase in national debt could lead to significant economic repercussions.
As the national debt rises, it may eventually shake the confidence of investors and foreign countries holding U.S. debt, leading to a decline in the value of the American dollar. This drop in dollar value would subsequently cause inflation.
For the past decade or so, inflation rates have remained relatively low due to the Federal Reserve's low-interest rate policies. However, as the U.S. debt continues to accumulate, the stage is set for a significant rise in inflation. The inflationary pressures could result in increased taxes, bank failures, business bankruptcies, and an overall rise in poverty levels.
The 1.9 Trillion Stimulus Plan
The biggest anticipated increase in federal spending under Biden is the 1.9 trillion stimulus plan. While the final amount may not be exactly this figure, it represents a substantial commitment to alleviating economic pressures and providing support to citizens.
Other major initiatives include expanding access to healthcare, including free healthcare for all, forgiving student loans, and providing more generous benefits to illegal immigrants. All these programs will cost a considerable amount of money, which will have to be covered by taxpayers.
Conclusion
The increase in federal spending under Biden is inevitable and will have far-reaching economic implications. It's essential for both the government and citizens to be prepared for the potential economic challenges that may arise, including increased inflation, financial instability, and rising poverty levels. The timeline for the effects is uncertain, but the inevitability of these challenges is clear.