May 03, 2021
President Biden must think his access to taxpayer money is limitless.
According to the Congressional Budget Office, the federal budget deficit for fiscal year 2021 ballooned to $1 trillion in five months (October 2020 – February 2021), which is the fastest rise in U.S. history. It’s projected to reach 102% of gross domestic product by the end of this year. Even wilder, those numbers do not include any spending related to the president’s $1.9 trillion stimulus package or the upcoming $3 trillion infrastructure spending spree still under debate.
In fiscal year 2019, the federal budget deficit was $1.1 trillion. The next year it exploded to a new record of $3.3 trillion. This fiscal year, the deficit is expected to be $3.4 trillion. Unfortunately, that projection could be low. The final tally will be decided by how much of the stimulus and infrastructure spending happens this year versus in the future.
Go big or go home, I guess.
Total U.S. debt is clearly out of control. In fact, it’s on track to exceed $30 trillion by the end of this year. And it seems politicians on both sides of the aisle in Washington D.C. have disregarded caution with respect to the debt. The jump from $20 trillion to $30 trillion seems to have occurred in no time whatsoever.
It’s as if people believe we can borrow and spend all the money we want without any negative consequences. But deep down, I think we all know this movie doesn’t end well.