Friends,
Every day, it becomes more clear that the fiscal future of America is in dire straits. Americans continue to be crushed by the effects of terrible fiscal policies. Folks are paying more at the grocery store, gas station, and pharmacy. Meanwhile, Washington is spending like there is no tomorrow with money they don’t even have.
The Treasury Department recently reported that the fiscal year 2023 deficit reached a whopping $1.7 trillion. This represents a 23 percent increase in just one year, reflecting the alarming trajectory of the country’s finances. Many experts are even suggesting that the worst is yet to come, as “Bidenomics” ushers in a new era of multi-trillion-dollar deficits.
Interestingly, even with reduced revenues, a balanced budget could have been achieved if President Biden had allowed spending to return to pre-pandemic levels. Unfortunately, Treasury outlays have increased by 38 percent compared to pre-pandemic times. This misleading representation of the deficit, is $1 trillion lower than when Biden took office, obscures the fact that elevated spending levels from 2020 have been sustained rather than reduced.
The primary driver behind these massive deficits is the excessive federal government spending, which reached a staggering $6.1 trillion in the previous year. However, government receipts only amounted to $4.4 trillion, falling significantly short of the projected $5trillion. The slowdown of the economy and counterproductive tax increases were cited as key factors contributing to the $457 billion drop in receipts compared to the previous fiscal year.
The Treasury’s practice of rolling over maturing debt by issuing new debt makes the situation even worse, especially considering that existing debt at low interest rates will soon be replaced with higher rates. This all rolls downhill, creating a debt snowball that will cost taxpayers over $1 trillion in interest during the current fiscal year, without even making a dent in reducing the debt.
A balanced budget is possible! It just requires fiscal responsibility and a reassessment of government spending priorities. We can’t allow for multi-trillion-dollar deficits to become the new normal. Lawmakers need to take appropriate measures to address the growing debt and implement sustainable economic policies that prioritize the well-being of all Americans before it’s too late.
I released my first Joe From Texas Talks this month. This is an opportunity for everyone to hear my thoughts on the direction of the nation. Give it a listen and let me know what you think! I enjoy reading your comments and receiving feedback as I work to spread the word on fiscal responsibility for America.