According to data released by the Department of the Treasury on Tuesday, Oct. 4, the total national debt was at $31.123 trillion as of Monday, Oct. 3.
The data proves that President Joe Biden’s administration is spending more taxpayer dollars than it is receiving. Last year, Biden’s federal government racked up a budget deficit of $2.8 trillion. Deficits occur when the government spends more money than it generates through tax revenue, forcing it to go into debt – debt that the American people have to pay for through their taxes. (Related: David Stockman on America’s debt palooza… From $1 trillion to $30 trillion in a heartbeat.)
Analysts noted that the landmark in the national debt comes at a moment when historically low-interest rates are disappearing as the Federal Reserve raises borrowing costs in a misplaced attempt to combat rapid inflation. This is going to make the government’s high rates of borrowing for its spending programs even less affordable.
“So many of the concerns we’ve had about our growing debt path are starting to show themselves as we both grow our debt and grow our rates of interest,” warned Michael A. Peterson of the Peter G. Peterson Foundation. “Too many people were complacent about our debt path in part because rates were so low.”
The budget deficit for 2022 is expected to be around $1 trillion. Given the new data, some experts believe the new floor in the growth of the national debt will likely be $1 trillion per year given how Biden has expanded entitlement spending as well as redirected Congress’ spending priorities to include multitrillion-dollar laws like the Inflation Reduction Act, as well as ongoing efforts to spend billions of taxpayer dollars in foreign aid, especially to Ukraine.
Biden claims he is reducing the deficit – but data says otherwise
In a statement, Biden actually praised his administration for slowing down the rate at which the government is accumulating new debt. The drop in the annual budget deficit has less to do with Biden or any of his policies and more to do with the easing emergency Wuhan coronavirus (COVID-19) spending programs, which in 2020 alone made the national debt rise by $1 trillion on just a month’s time on two different occasions.
“You know, Republicans talk about being fiscally responsible,” said Biden. “Last year, I reduced the deficit [by] $350 billion. You know how much this year, not counting the Medicaid changes? One trillion seven hundred billion dollars. So, I don’t want to hear it from Republicans about fiscal responsibility.”
But according to the Committee for a Responsible Federal Budget, a think tank that advocates for deficit reduction and entitlements and tax reform, Biden’s policies have actually added nearly $5 trillion to the national debt since he took office in January last year. This projection includes Biden’s $1.9 trillion economic stimulus bill and a whole host of other congressionally approved spending initiatives.
This assessment also takes into account Biden’s student loan debt forgiveness plan, which is expected to cost taxpayers nearly $400 billion over 30 years.
Sen. Ted Cruz of Texas noted that the Inflation Reduction Act amounts to hundreds of billions in taxpayer dollars of new spending that will “drive up inflation and prices, hammer small businesses and American manufacturing, increase the price of gas and (sic) the IRS on Americans, all while raising taxes on Americans in nearly every tax bracket, including those who make less than $400,000 a year.”
Rep. Chip Roy of Texas, meanwhile, noted that just five years ago, the national debt was $21 trillion. “Think about that,” he wrote.
“This is what happens when Congressional Democrats engage in unchecked partisan spending – and hardworking Americans are paying the price,” noted Rep. James Baird of Indiana. “The American people deserve better.”
Watch this clip from the “War Room” as Steve Bannon talks about how the Democratic administration’s spending programs are burying American children with a mountain of debt.
More related stories: