As inflation continues to soar here in the U.S., so does our national debt.
Makes sense, right?
But when you hear about how Joe Biden and the Democrats what trillions here, and trillions there, what you are not hearing? All of this money is not free!
So why do we keep on spending? And why do we keep on borrowing?
"It's a great question" said well respected economist from the Texas Public Policy Foundation E.J. Antoni. "Unfortunately, there is no discipline whatsoever in Washington, D.C. to spend less money, and to tax less, and that combination is going to continue to lead us down this path to insolvency."
Not a good path, and not a good look so far for the Biden administration. "Only the federal government could create a situation in which you have millions of unfilled jobs, and millions of people unemployed" Antoni said. "If the federal government were put in charge of the Sahara desert, in five years there would be a shortage of sand. They did it in five months."
It wasn't supposed to be this way. Under former President Donald Trump, America was on track for it's best economy in decades. Now? Antoni told KTRH we are headed in a completely different direction. "The former president's goal was one thing, and one thing only. Get the economy open, get this engine fired up again, and get people back to work. What are we seeing out of this current president? Exactly the opposite. Keep things shut down."
Although it is eerily similar to the debt crisis we had in 1994. But this is much worse. And despite what you hear, or don't hear, about Biden's promises to not raise taxes, and that only the wealthy are going to pay for everything? That's not possible. And as Antoni points out, inflation is actually a tax.
"We've drastically underestimated the Fed's ability to monetize debt, and to simply pay for government spending through the hidden cost of inflation" he said. "Prices have gone up 84% since 1994, they've almost doubled. They've taken about 42% of the value of every dollar that you had since then. That's a tax."
Yet another reminder. Be careful what you wish for, and be careful who you vote for.
Photo: AFP