Title: US Faces Mounting Debt Crisis as Deficit Soars to $1.7 Trillion
Subtitle: Biden Administration’s Unprecedented Spending Cripples Economy
Date: [Insert Date]
Written by: [Author’s Name]
In a shocking revelation, the US Treasury Department announced that the deficit for fiscal year 2023 has reached a staggering $1.7 trillion, growing by 23 percent in just a single year. As the Treasury allocated a significant portion, $879 billion, only to service the federal debt, experts warn that the worst is yet to come, with multi-trillion-dollar deficits becoming the new normal under Bidenomics.
Government spending is identified as the primary driver of these massive deficits, which amounted to $6.1 trillion last year. However, government receipts fell short, reaching only $4.4 trillion, resulting in a $457 billion drop in revenue from the prior fiscal year. A slowing economy and counterproductive tax increases were cited as key factors contributing to the decline in receipts.
Had President Joe Biden allowed spending to return to pre-pandemic levels, the budget would have been balanced. Instead, Treasury outlays have soared by 38 percent compared to pre-pandemic times. This move has raised concern among economists who assert that the Biden administration has institutionalized $6-trillion budgets, merely replacing pandemic-era spending with the Biden agenda.
The US budget deficit is even more alarming when one delves deeper into the figures. The $1.7-trillion deficit in the last fiscal year was in actuality a $2-trillion deficit, with only a technical reduction of $300 billion when the Supreme Court blocked Biden’s student loan handout scheme. However, this money has been reallocated to be spent in fiscal year 2024 as the Biden administration plans to proceed with its unconstitutional student loan bailout.
With the federal debt amounting to over $33.5 trillion, the breakneck pace of borrowing continues to increase daily. Glimmers of hope brought about by the Supreme Court’s intervention are overshadowed by the rising cost of servicing the debt, which now surpasses military spending and is exceeded only by the Social Security Administration and the Department of Health and Human Services.
Financial markets are starting to take note of the US Treasury’s unsustainable path and are demanding higher yields for lending money, increasing the cost to service the debt. Gross interest outlays are skyrocketing as new debt is issued at higher interest rates. Furthermore, the Treasury’s practice of not paying off maturing debt but instead issuing new debt, including interest payments, compounds the problem. Trillions of dollars in existing debt at low interest rates will rollover at rates two to three times as high within the next year, exacerbating the debt crisis.
This debt spiral, described by some as a “debt death spiral,” will cost the Treasury and taxpayers over $1 trillion in interest during the current fiscal year, without making a dent in reducing the debt.
Despite the alarming state of the US economy, the Treasury recently praised the annual report, touting it as evidence that Bidenomics is working to “build the economy from the middle out and bottom up.” However, the reality tells a different story, with two-thirds of Americans disapproving of the current economy. Since President Biden took office, the typical American family has seen an effective loss of $7,300 in annual income. Housing costs, including mortgage payments and rents, have skyrocketed, and credit card debt has surpassed $1 trillion.
Economists warn that the nation’s finances are in dire straits, and urgent action is needed. The Biden administration’s unprecedented spending is placing an enormous burden on the American people, who are already struggling to make ends meet. As the Treasury continues to bury its head in the sand, it is crucial to address this mounting debt crisis before it spirals out of control and inflicts irreparable damage on the US economy.
E.J. Antoni, a public finance economist at the Heritage Foundation and a senior fellow at the Committee to Unleash Prosperity, emphasized the urgency of the situation and urged for immediate action to prevent further deterioration.
As the debt crisis looms, time is running out for the US to reverse this financial quagmire and protect the future of its economy.
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