The Debt-Ceiling Debate and Its Economic Implications

The Debt-Ceiling Debate and Its Economic Implications
The Treasury Department in Washington, on April 25, 2021. Al Drago/Reuters
Robert Genetski
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Last summer, President Biden and a majority in Congress celebrated legislative victories over major increases in federal spending. My Epoch Times article last August described the celebrations as pyrrhic victories. The celebrations would end as the damage from these policies became apparent.

Nine months later, although Democrats continue to celebrate, declines in real incomes and productivity indicate the damage has begun.

The explosive increased in federal spending

The Biden Administration’s took the temporary emergency spending from Covid and made it a permanent part of the federal budget. The following table shows the extent to which the combination of new federal programs has raised total spending.
Robert Genetski
Robert Genetski
Author
Robert Genetski is a public speaker, author, columnist, and one the nation’s leading economists. He has taught economics at the University of Chicago’s Graduate School of Business and NYU. His latest book is “Rich Nation, Poor Nation: Why Some Nations Prosper While Others Fail.” Genetski’s website is ClassicalPrinciples.com.
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