Federal Budget Deficits: Path of Fiscal Doom

Chris EdwardsPresident Trump approved $900 billion in stimulus spending in December and President Biden approved another $1.9 trillion in March. Biden is set to propose a  further $3 trillion on infrastructure, and Majority Leader Chuck Schumeris exploring ways to bend Senate rules to keep the spending flowing.This gusher of spending is greatly damaging. This is not monopoly money, but rather it represents real resources that will be confiscated from people when the bills come due. Even without an infrastructure package, the federal government will spend $6.8 trillion this year, or double the $3.4 trillion the government will collect in tax revenues. That means the politicians are putting us another $3.4 trillion in debt just this year. That is like a  family earning $34,000 and then spending $68,000 with $34,000 on credit cards.When politicians issue debt, it is a  uniquely damaging and unfair policy action. In general, Congress cannot bind future Congresses, which is called “legislative entrenchment.” Congress can pass laws restricting civil liberties today, but we can always get future Congresses to repeal them and end the damage. But with debt, Congre ss binds future taxpayers. It creates irreversible damage, an anchor that drags down the standard of living of Americans for decades to come.Today ’s vast federal spending is particularly unjust to young people, who will have their own crises and costs to deal with down the road. Huge deficit spending may prompt a ...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs