Michael Snyder’s stock in trade is pessimism, gloom, and doom, but he’s probably right on this one. From Snyder at themostimportantnews.com:
Every dollar that the federal government borrows and spends puts us even closer to a day of reckoning. Many Americans (especially those on the left) seem to think that we can endlessly spend trillions upon trillions of dollars without ever suffering any consequences. If that was true, why hasn’t any other society in all of human history ever been able to do such a thing? Unfortunately, the truth is that the United States is not immune to the laws of economics. Wildly creating money and driving up our national debt to absurd heights is inevitably going to crush our economic system. And at this point, our debt-to-GDP ratio is already higher than Greece’s debt-to-GDP ratio was when the economy of that country finally collapsed…
But it’s worth noting that the US debt-to-GDP ratio—essentially a country’s debt compared to its annual economic output—was 129 percent at the end of 2020. In other words, the official US debt was nearly a third larger than the entire US economy.
Even though we are already at such a dangerous level, the Biden administration wants Congress to pass another four trillion dollar spending package…
Senate Minority Leader Mitch McConnell, R-Ky., said Monday that he did not expect any Republican senator to support President Biden’s push for a $4 trillion spending package on infrastructure and other projects.
Biden has outlined a two-part tax and spend proposal with funding for physical infrastructure projects as well as initiatives favored by his administration, such jobs training, elderly care and universal preschool. McConnell reiterated that the $4 trillion price tag was a nonstarter for Republicans, as well as some Democrats, who favor a smaller plan directly tied to infrastructure projects such as roads and bridges.
We simply don’t have the money to do what Biden wants.