On Monday, President Donald Trump will unveil a massive $4.8 trillion federal budget for the fiscal year 2021.
The Democrats are claiming that this is a disaster of a budget because he is not spending enough, while Republicans say that spending increases will be at a slower rate. The deficit is projected to come in at $986 trillion, just less than the Congressional Budget Office’s forecast of $1 trillion.
Overall, it is bad news for taxpayers and future generations as the plan adds to the national debt. But, hey, Americans may get a man on Mars out of all this.
Although the administration plans to cut $4.4 trillion over the next 15 years, President Trump doesn’t seem too worried about the federal budget. He reportedly told a fundraiser in Florida last month:
“Who the hell cares about the budget? We’re going to have a country.”
Yeesh. No wonder why he has added $3 trillion to the national debt during his presidency.
No matter who wins in November, the country will still be on the cusp of bankruptcy.
This deficit spending is CRAZY!
In order to pay down our national debt you would have to combine the GDP of China, Japan, and India.
The United States owes $68,400 per citizen.
The United States owes $183,000 per taxpayer.
The United States currently has $125 trillion (yes, trillion) in unfunded liabilities.
According to the nonpartisan Congressional Budget Office (CBO), the US debt held by the public will reach 100 percent of GDP in 2028.
In 2008, interest on the federal debt was $253 billion. Interest for Fiscal Year (FY) 2019 is roughly 89 percent higher.
For FY 2019, interest alone on the federal debt is $479 billion. In 1979, total federal government receipts were $463 billion.
In the year 2000, the federal debt was $5.67 trillion. In 2019, federal debt is 297 percent higher.
At Forbes, Jim Powell writes that the old New Deal cost about $50 billion from 1933 to 1940, whereas the “future cost of old New Deal programs still in effect is reckoned at more than $50 trillion.”
A recent analysis by the CBO projected that the federal budget deficit (deficit as in the difference between federal outlays and revenues) will grow to $1 trillion alone in 2020.
As of December 2018, only ten countries have worse Debt-to-GDP ratios than the United States.
At NPR, Danielle Kurtzleben writes that Senator Bernie Sanders’ “taxation-and-spending plans…would together add $18 trillion to the national debt over a decade.”
According to the Center on Budget and Policy Priorities, roughly 24 percent of federal spending goes to Social Security, 26 percent to federal health insurance programs, 9 percent to safety net programs, and only 2 percent on transportation infrastructure.
By 2025, the cost of servicing our national debt will exceed the cost of our military spending.
The cost of implementing a Universal Basic Income, presidential candidate Andrew Yang’s central social program proposal, would cost $3.8 trillion per year or roughly 85 percent of current federal spending.
It would take the United States 713,470 years to pay down the national debt if we paid $1 per second of the year.
Modern presidents have doubled the national debt every nine years.
The Federal Reserve “purchased large amounts of federal debt as part of its quantitative easing program,” thus cheapening the cost (decreasing the interest rates) of money.
Does anyone with a brain not see a problem with this out of control Federal Government spending.