RALEIGH – Despite the Pandemic Panic, and all the uneven pain it inflicted, many state budgets are doing quite well. That includes North Carolina, where tax revenues did not shrink, and the advent of multiple COVID-related federal ‘rescue’ packages added billions to the bottom line.
From a state perspective, where budgets are balanced by law, it’s a boon. But we are all citizens of the United States, and the federal government’s spending over the last 15 months has been so profligate as to be hard to describe. Alas, that doesn’t even count all the impending spending plans yet to be passed in DC.
In an op-ed for Carolina Journal, Brian Balfour points out that there isn’t enough money in existence to actually pay for it all these ‘Biden Bucks.’
“In selling the supposed benefits of his recently unveiled spending proposals – that would total more than $4 trillion over several years – President Joe Biden bragged that his plans are “designed to redistribute the nation’s wealth.”
On this point, I agree. But the wealth redistribution will not be in the way he means it.
Over the past 14 months, the federal government has committed roughly $5.3 trillion to address the COVID pandemic and the economic fallout from the government’s response.
This helped drive total federal spending to $6.6 trillion in FY 2020, creating a record $3.1 trillion deficit for the year.
The spending binge further ballooned the national debt total up to more than $28 trillion.
In short, how does Biden propose we pay for his expensive plans?
His more than $4 trillion in spending proposals would presumably be in addition to federal budgets that would also run significant deficits.
Preliminary details of Biden’s budgetary plans include a whopping 8.4% increase in discretionary spending and a massive 15% spike in other domestic programs.
There is simply not enough money in existence to finance these plans, nor enough willingness to fully fund the debt spending by borrowers using current resources. [CONTINUE READING]“