Just before the start of Memorial Day weekend, Biden announced the details of his proposed budget for the next fiscal year.
However, critics noticed the timing of the budget proposal’s release. Critics said most politicians try to avoid negative press by releasing budget details before most people go on a vacation.
Then, after taking a closer look at Biden’s proposed budget, it’s easy to see the reason why the White House is trying to hide the budget release.
Last week, President Biden released a $6+ trillion budget proposal that would take the US to unprecedented levels of government spending and taxation.
New scrutiny of the fine print has revealed a bizarre detail that totally undercuts its merits. https://t.co/6OMjeWTDJc
— FEE (@feeonline) June 6, 2021
Biden’s budget involves a huge portion of programs the White House has been pushing for months. This includes $225 billion for child care, $174 billion for electric vehicles, $115 billion for roads and bridges, and $109 billion for “free” community college, amongst other details.
Some Americans might find these programs appealing; however, what most Americans will not hear is how the country will pay for these huge expenses. Its expensive requirements could result to an immense economic crash.
Total cost of Biden’s budget proposal is $6 trillion
According to White House’s own estimates, the total cost of all these plans is a whopping $6 trillion. This will add to the $1.8 trillion deficit of Biden’s first-year budget.
If the estimates provided by the White House are accurate, the deficit under the Biden administration will be the largest deficit in American history. The one and only exception would be in 2009 during the “Great Recession” when the yearly deficit reached $1.8 trillion.
While Joe Biden claims he's not raising taxes on the middle class, his reckless economic agenda is causing the inflation rate to skyrocket…
This translates to an increase in the cost of nearly everything, which is, in effect, a hidden tax on Americans.
Don't buy his lies.
— Tea Party Patriots (@TPPatriots) June 12, 2021
However, Biden plans to offset some of this proposed government spending by raising taxes on wealthier families, individuals, and business. However, the White House’s own assessment suggests the country’s debt would remain historically high. This will be throughout Biden’s presidency, despite the proposed tax increase.
Accordingly, the Biden administration predicted that from 2021 up until 2031, the federal deficit of the United States would never go below $1.3 trillion because of Biden’s plan.
That means this: if the White House finds its way to push this, the effects of Biden’s presidency will more likely put the country in the highest debt era in history.
Meanwhile, few people in the White House appear to be more concerned about taking this soaring national debt more seriously.
Printing more dollars could cause inflation and devaluation of money in circulation
The only way the government could fund these huge amounts of debt proposed by Biden is to continue asking the Federal Reserve “print” trillions of dollars. This plan has been used more by the federal government since the Obama administration.
Although this solution sounds pretty easy, there are some problems that go with creating huge amounts of new money. Yet, the biggest consequence is that it could cause inflation and devaluation of the money in circulation.
In other words, the money that is currently stored in your bank account will become less and less valuable as the Federal Reserve prints more dollars.
In most cases, when economies are healthy, they can absorb inflation without much damage. However, the unexpected money-printing spree that occurred throughout the course of the pandemic was so extreme that it caused inflation to rise too fast for the economy to keep up with.