Government Spending Could Top $9 Trillion

Chris EdwardsPresident Biden ’s push to spend another $1.9 trillion on economic relief is surreal given that government budgets are vastly ballooned already. Total federal, state, and local government spending soared from $6.8 trillion in 2019 to $8.8 trillion in 2020. That is $68,000 in government spending for every househo ld in the nation.We have already imposed $6 trillion in new debt on future taxpayers in just two years. More spending would be reckless and extremely unfair as young people will have their own costs and crises to deal with down the road. Vaccinate people, repeal shutdown mandates, and the economy will recover by itself. That ’s what market economies do. The government has already spent far too much.The chart shows federal, state, and local government spending, with estimates for 2020 and 2021. It includes the almost$900 billion in relief spending passed in December, but does not include Biden ’s proposed$1.9 trillion in new aid. If Biden ’s plan passes, spending will easily top $9 trillion in 2021. Data are for federal fiscal years.The patterns of spending and revenues in the current downturn differ from the Great Recession a  decade ago. Back then, state‐​local government revenues dipped and federal revenues plunged. In the current downturn, overall government revenues are fairly stable.During the Great Recession, total government spending rose about $1 trillion, and then flatlined for a  few years before rising again. This time, spending ...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs