Conservative think thank the Manhattan Institute estimates that Joe Biden’s spending programs would cost American taxpayers $11 trillion.
Summit News reported on the think tank’s findings and how Biden’s plans for global warming, healthcare, infrastructure, and social security would lead to a debt crisis in America. Brial Riedl authored the report.
Rield told the Daily Caller that “The policies he’s proposing are going to endanger the economy over the long term” and would add “$4 trillion in new taxes, which is the biggest tax increase since the end of World War II, as well as $11 trillion in new spending, certainly more regulation, a higher minimum wage. All of that is going to weaken the economy.”
In addition, Biden has unveiled a proposal for $2.4 trillion in Wuhan virus stimulus spending, on top of $2 trillion in spending for global warming and infrastructure, and a $1.5 trillion plan to expand health care. According to certain estimates, Biden’s education spending program will total $750 billion, which includes a plan for the government to provide free college.
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The former vice president has provided little information about how his administration would pay for this largesse. His campaign does intend to raise taxes on big corporations and high income earners.
The numbers were based on figures coming from Biden’s campaign website, the Committee for a Responsible Federal Budget and the Congressional Budget Office.
“It’s absolutely unsustainable,” Riedl asserted. He is of the opinion that “The danger is that eventually the interest costs will bury us. When you borrow that much money, all it takes is a small increase in interest rates to completely bury the federal budget.”
“Ultimately, we’re going to face a reckoning that requires either significant reforms to programs like Social Security and Medicare, or a possible doubling of middle class taxes,” Riedl cautioned, opining that “There’s really no third option.”
“The worst case scenario is that politicians continue to pour gasoline on the fire by enacting even more spending, which just accelerates a debt crisis,” Riedl observed.
Under the Trump administration, the deficit has generally stayed under $1 trillion annually. However, deficits are expected to explode due to Wuhan virus spending. The national debt is currently at $27 trillion.
In addition, the Federal Reserve will likely be back to its usual business of promoting easy money during this time of economic uncertainty. This combined with massive spending could bring about stagflationary environment that Americans have not experienced in decades