We Are Dangerously Close To “The Tipping Point”
Francesco Abbruzzino, The Uncensored Report, LLC
Every dollar that the federal government borrows and spends puts us even closer to a day of reckoning. Many Americans (especially those on the left) seem to think that we can endlessly spend trillions upon trillions of dollars without ever suffering any consequences. If that was true, why hasn’t any other society in all of human history ever been able to do such a thing? Unfortunately, the truth is that the United States is not immune to the laws of economics. Wildly creating money and driving up our national debt to absurd heights is inevitably going to crush our economic system. And at this point, our debt-to-GDP ratio is already higher than Greece’s debt-to-GDP ratio was when the economy of that country finally collapsed…
But it’s worth noting that the US debt-to-GDP ratio—essentially a country’s debt compared to its annual economic output—was 129 percent at the end of 2020. In other words, the official US debt was nearly a third larger than the entire US economy.
That is considerably higher than Greece’s debt-to-GDP ratio in 2010, when it received a bailout from the International Monetary Fund to avoid defaulting on its obligations.
Even though we are already at such a dangerous level, the Biden administration wants Congress to pass another four trillion dollar spending package…
Senate Minority Leader Mitch McConnell, R-Ky., said Monday that he did not expect any Republican senator to support President Biden’s push for a $4 trillion spending package on infrastructure and other projects.
Biden has outlined a two-part tax and spend proposal with funding for physical infrastructure projects as well as initiatives favored by his administration, such jobs training, elderly care and universal preschool. McConnell reiterated that the $4 trillion price tag was a nonstarter for Republicans, as well as some Democrats, who favor a smaller plan directly tied to infrastructure projects such as roads and bridges.
We simply don’t have the money to do what Biden wants.
In fact, we didn’t have the money for any of the “stimulus packages” that have been passed since the start of the pandemic.
We had to borrow every single dollar that went out in the “stimulus checks”, and now Democratic lawmakers are “clamoring” for a fourth round of those checks…
Democratic lawmakers in both chambers of Congress are clamoring for a fourth round of stimulus checks to help Americans who are still struggling financially during the coronavirus pandemic.
Such a move could lift more than 7 million people out of poverty, according to a recent analysis from the Urban-Brookings Tax Policy Center, a nonpartisan think tank.
If more money is the solution, then why don’t we send out five billion dollars to every American citizen?