HomeLatest NewsFederal Budget Swells as Your Wallet Shrinks

Federal Budget Swells as Your Wallet Shrinks

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An economist recently warned of the link between increased government expenditures and an increase in personal debt among Americans. This is a very sobering message, especially with the bloated federal budget that Congress plans to release.

EJ Antoni, a public finance economist and research fellow at the Heritage Foundation, highlighted in an article published on March 12th, how harmful government spending is to ordinary American families. While the government continues to merrily proceed down the path of bankruptcy, and Biden falsely states that his economy is not in a crisis, Americans’ credit card debt reached a record high.

By the end of 2023, Americans owed a record amount of $1.13 trillion on their credit cards. Antoni explained that the cards Americans use to pay for necessities and basic bills charge an annual interest of $240 billion. Biden’s extravagant spending exacerbated the crisis by devaluing the dollar. Antoni explained the cost of living crisis, pointing out that 60% of US households live paycheck-to-paycheck and that workers are forced to work extra hours.

Between January 2021 and June 2022, the real average weekly earnings (adjusted for inflation) fell by 5.1%. In January 2024, 3 years after Biden’s election, real earnings had fallen 4.4%. The average American family’s real weekly pay fell by $85 during that period, even though it grew by $270.

The worst is yet to come Credit card debt was a common problem for many Americans when interest rates were near or at 0%. The expiration of these introductory offers and the rapid increase in interest rates during the past few years have led to a record-breaking rise in credit card financing costs.

The cost of living has risen faster than Hunter Biden’s cocaine addiction. Antoni writes that too many families are constantly taking on new debts to pay for both their current expenses and interest from previous debts. Interest rates are high with inflation at its highest level in 40 years.

Antoni explains that government spending “causes an inflation which necessitates borrowing and makes borrowing more expensive.” The federal government also continues to accumulate debt that it can’t pay. The interest on our national debt costs taxpayers $1 trillion a year. This is the equivalent of over 40% of Americans’ income tax, just to service our national debt.

According to Antoni, under Biden, the national debt has increased by a staggering $6.5 trillion.

The nonpartisan Congression Budget Office just confirmed my forecast from last year that interest will consume a record percent of our economy by 2025. The federal government will soon have to pay interest on debt that politicians have accrued.

Federal Reserve can create money on politicians’ orders, but the danger remains, especially in light of an international trend towards de-dollarization. The average American can’t keep requesting more money from other people for stupid projects like politicians. Antoni stated, “Every time federal budgets increase, family budgets decrease.”

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