Since President Joe Biden took office on January 20, 2021, the federal government has been on track to add another $3 trillion to the national debt. Bloomberg reports that “Biden’s 10-year outlook would create a $14.4 trillion deficit. Increasing the national debt to $44.8 trillion.
So what is the party working on with majorities in Congress and the White House to address the economy etc.?Not much actually, instead, they are working to pass a massive $500 billion spending bill that includes funding for climate change policies and protects the former state health program from bankruptcy.
Even as the Federal Reserve is forced to raise interest rates to try to stem runaway inflation, Democrats want to spend, spend, and spend more. Governments’ failed attempt to implement the controversial Modern Monetary Theory leads to the illogical actions we see every day. Even CNN is pointing out the damage that inflation-related spending is doing.
“Inflation is rising at the fastest pace in 40 years, fueled by record gas prices: inflation of 8.6%.” “Record gasoline prices pushed inflation up to 8.6% in the 12 months to May, a faster pace than in April, according to the latest CPI, the government’s key inflation measure. The Senate is split 50/50, and even if Vice President Kamala Harris votes with Democrats as a tiebreaker, it would only take one defector in President Joe Biden’s political party to scuttle the legislation needed to enact key points of the Senate advancing the schedule of the Senate Administration.
One of the two Democrats holding back the government, Sen. Joe Manchin (D-WV), ended up being the main reason the Build Back Better Act didn’t go ahead. Manchin vowed to do whatever it takes to help his party pass some key bills the White House is focusing on. The old-school Democrat from the coal-mining state of West Virginia is still in talks with Senate Majority Leader Chuck Schumer (D-NY) over a reconciliation package that would spend $500 billion and with an unrealistic expectation of revenue to raise $1 billion. The package would mainly focus on healthcare, energy, and taxes.
A source told NBC News that the “ceiling” on climate change funding will be capped at $300 billion, making it a key element of the package. Another provision that would allow Medicare to negotiate the price of prescription drugs would likely save money. This would allow Senate Democrats to potentially include in the bill the extension of Obamacare’s boosted subsidies, which would cost $220 billion if the subsidies were extended permanently, according to the Congressional Budget Office. (CBO).
The Democratic leadership appears to be trying to get Biden to sign something with the US. Congress begins its summer recess. Additionally, most political analysts and polling firms are predicting a big GOP red wave in the November midterm elections. If it happens, House Speaker Pelosi and Majority Leader Schumer’s leadership positions would come to an end, and it would usher in a lame-duck presidency for Biden’s final 2 years in office.