Possible Budget Deal Will Add $2 Trillion to the National Debt
It holds true that the only thing pretty much everyone in Congress and the White House can agree on is to spend more money. https://webcache.googleusercontent.com/search?q=cache:OT5VNlf3GZ0J:https://reason.com/2019/07/22/possible-budget-deal-will-add-2-trillion-to-the-national-debt/+&cd=22&hl=en&ct=clnk&gl=us&client=safari
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President Donald Trump announced a bipartisan deal to suspend the U.S. debt ceiling and boost spending levels for two years…Under the terms of the agreement the budget cap for discretionary spending will rise to $1.37 trillion in 2020 and $1.375 trillion in 2021 -- which doesn’t include the cost of programs like Medicare, Medicaid and Social Security that are automatically funded, according to a person familiar with the deal. That’s an increase from $1.321 trillion this year. https://www.bloomberg.com/news/articles/2019-07-22/trump-says-lawmakers-reach-bipartisan-debt-limit-suspension-deal
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“$Trillion deficits as far as the eye can see.” - Maya MacGuineas (in video) https://www.cnbc.com/video/2019/07/23/debt-ceiling-fiscal-policy-congress-politics-squawk-on-the-street.html
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federal spending would be increased by $320 billion more than what the budget would have been. https://www.forbes.com/sites/rachelsandler/2019/07/22/what-congress-doing-when-it-suspends-the-debt-ceiling/#4800d96f2065
No, here in Easter week 2020 the federal government has blown past $320 billion increase plan by at least 10x. Under the cover of coronavirus; o the wonders of unlimited spending! Wouldn’t Napoleon in all his vanity have drooled to do such a thing—or maybe he wasn’t that dumb to offer up 10 generations to come of Frenchmen as collateral for such a big leap into very longterm debt!
-r, mt. shasta
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More spending. More debt. More failure of representation. This “deal” reflects our broken process. A few
“leaders” dictate terms to everyone else. They don’t care how bad the “deal” is for America as long as they maintain power. They then bribe and punish others to get it done. https://twitter.com/justinamash/status/1153425961431359488?lang=en
Our constitutional republic was established to supplant the Rule of Man with the Rule of Law.
When confronted with a massive crisis necessitating fast, direct relief to the people the government chose to create multiple complex programs, expand bureaucratic barriers and micromanage economic decisions. America needs a new approach that empowers people, not government.
Oh, the people know exactly whom that law was written to benefit and who was handed crumbs. When it comes to helping most Americans, your attitude is “too small to care.”
Justin Amash
Apr 2
The recent coronavirus law may help some Americans find temporary relief, but it is too slow, wholly insufficient, and riddled with bad incentives and unintended consequences. The law will exacerbate and prolong a devastating economic decline that will harm millions of people.
It seems to have gone largely unnoticed that Mnuchin has unilaterally altered the Paycheck Protection Program to substantially reduce loan forgiveness. Law says a business can spend ~50% of the loan on nonpayroll and still receive full forgiveness; Mnuchin says not more than 25%.
Furthermore, the new law will be complex to administer, requiring a lot of bureaucracy and paperwork that will delay or deny assistance and produce countless errors. There is considerable economic and social value to the simplicity and speed of universal, monthly cash relief.
Small businesses will be eligible for loans to help them weather the storm, but obtaining loan forgiveness means giving up flexibility. Some businesses can manage this, but many others will stagnate at a time when they need to adapt. This will not benefit workers in the long run.
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