Armstrong Economics Blog/Gov’t Incompetence Re-Posted Oct 7, 2022 by Martin Armstrong
The US national debt has reached a historic high under Biden after surpassing $31 trillion. The national debt has always been chaotic as politicians push spending agendas with no plans to pay their debts. The only time the national debt was paid in full was in January 1835 under President Andrew Jackson. The US fell into debt just one year later as a result of the Civil War and Jackson’s war on the banks.
The last time the US experienced a surplus was in 2001, although the debt still increased. COVID spending pushed the nation’s debt to new levels, and the US government spent $3.1 trillion more than it earned. In 2021, the federal government spent $2.8 trillion more than it earned. Now in 2022, the Biden Administration is announcing a new spending plan each week.
Biden spent $1.9 trillion on the American Rescue plan last year, which many blame for fueling inflation as $400 billion was earmarked for Americans to stay home and not work. Biden attempted to pass the $5 trillion Build Back Better bill, the largest proposed bill in US history. When that bill failed, Biden signed the Inflation Reduction Act for $740 billion. Numerous independent studies have stated that the act will only worsen inflation.
Biden plans to spend around $400 billion to cancel student loan debt for families earning as much as $250,000 annually. To add insult to injury, Washington has sent Ukraine nearly $17 billion this year alone. This administration is not worried about taxpaying citizens, and eventually, the citizens will be the ones footing the bill for Biden’s excessive spending.