The latest Congressional Budget Office report reveals that rising deficits, federal spending and debt under the Biden administration are causing significant economic concerns, with calls for policy changes to address the financial instability.
CBO Report Highlights Soaring Federal Spending and Debt Under Biden Administration
According to The New York Sun, the Congressional Budget Office (CBO) report reveals concerning trends in the federal government’s finances. Rapidly rising deficits, federal spending and debt are exacerbated by recent increases in planned spending and unexpected expenses for Fiscal Year 2024. President Biden‘s policies, including student loan cancellations and Medicaid expansion, are major contributors to this financial strain. Despite substantial revenue, projected spending may reach 25% of GDP in the next decade, leading to $2 trillion deficits and total debt hitting 122% of GDP.
The rising federal spending and debt have led to over $1 trillion in federal interest payments, taking money away from defense and other essential programs. Critics say that the Biden administration’s policies, like short-term borrowing and increased regulations, are making economic problems worse. The Wall Street Journal suggests that if spending had stayed at pre-pandemic levels, this year’s deficit would be $890 billion less, and the ten-year deficit would be $13.4 trillion smaller.
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$2.6 Trillion Surge: CBO Reports Alarming Rise in Deficits, Federal Spending and Debt Under Biden Administration – Must Know! (PHOTO: Peter G. Peterson Foundation)
Experts Urge Policy Changes and Tax Cuts to Address Rising Federal Spending and Debt
Experts are calling for changes to fix the situation such as canceling the Inflation Reduction Act, stopping student loan cancellations, and ending extra welfare benefits from the pandemic. They also suggest keeping the Trump tax cuts to help grow the economy without raising taxes. As people lose confidence in the current administration’s handling of the economy, there is a growing need for a new approach to fiscal policy.
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