The Biden Administration deserves an “F” grade for their handling of the nation’s budget. The latest financial figures indicate the most severe recklessness of spending in our country’s history. The downgrade of the USA credit rating last week by Fitch Ratings Agency has been fully justified.
For the first 10 months of the current fiscal year, the amount of borrowing just to pay this year’s expenses has reached a staggering $1.62 trillion. The Covid crisis has passed. No urgent domestic emergencies require extra dollars. We are not at war. But spend, spend, spend is the Biden economic plan.
The post Covid expansion still has legs, and so far we have avoided a recession. Normally when the economy grows after a downturn, D.C. leaders in the past have been smart enough to let the growth shrink the amount of borrowing. From 1997 to 2000, President Bill Clinton and the Republican Congress worked in a bipartisan manner to reduce borrowing and even pay off some U.S. debt.
Not now, however. The Biden program has ratcheted up extra spending for his latest student-loan payment plan to the tune of $71 billion; bailing out some big banks cost $52 billion; and interest payments on the debt have increased $146 billion.
We all feel dismayed when friends and family ruin their finances by making bad decisions and then cringe when we hear how badly the shocking debt payments strangle their monthly finances. So too has the Biden White House brought this financial mess upon us with over the top spending. The overspending has caused historic inflation, which forced the Federal Reserve to push interest rates higher, which has, in turn, ballooned our debt payments.
I hate that American families must suffer the financial hardship of higher inflation and higher interest rates. The Biden acolytes, who spent last week claiming the Fitch downgrade was unnecessary, need to instead figure out how to help everyday Americans get more growth and prosperity to raise their kids, pay their bills and save some money.