(TheLibertyRevolution.com)- President Joe Biden is setting new economic records, but it’s not something that any president would want to hang his hat on.
In March, the federal government had a budget deficit of almost $660 billion. That pushed the overall shortfall in the budget to $1.7 trillion in just the first half of the 2021 fiscal year — setting a new ominous record in the process.
Last year, the U.S. government reached a deficit of $3.13 trillion, fueled primarily by various economic stimulus packages designed to get the country out of the pandemic-driven recession. Before that time, the deficit had only risen to more than $1 trillion four times, and all of those occurred during the Great Recession.
With six months to go in the 2021 fiscal year, the U.S. is on track to reach higher than $2 trillion in deficit. Before now, the record deficit for the first six months of any fiscal year was $829 billion, which occurred in 2011.
Total spending in the 2021 fiscal year is already at $3.41 trillion, after $927.21 billion was spent in March alone. That was offset by only $267.61 billion in Treasury receipts that month.
The sad part is the receipts represented an increase of 13% year-over-year, but the deficit still rose substantially because of how much the government is spending.
The worrisome part for many people is that much of the money that was approved as part of the American Rescue Act, Biden’s latest stimulus proposal, hasn’t even been spent yet. In other words, the $1.9 trillion package will soon start to be added to the government’s spending list, potentially increasing the deficit even more.
As of March 1, the national debt in the U.S. rose above the $28 trillion mark for the first time in history. Broken down, that would represent $85,255 in debt for every citizen of America.
The National Debt Clock reports that the ratio of debt-to-GDP in the U.S. is currently 130.02%. While everyday Americans may have bigger concerns than the country’s debt, it has proven to have dire consequences and trickle down to them eventually.
Many studies have reported that any ratio of debt-to-GDP that’s greater than 90% will slow economic growth by roughly 30%. This would be a major concern for a country that’s still reeling economically from the effects of the COVID-19 pandemic. It threatens to quickly stunt any progress that’s being made with jobs and the overall financial state of the country and families.
Peter Schiff, a radio personality and stock broker, said in a series of tweets recently:
“We didn’t get $659 billion worth of government spending for free. The public will pay the balance through the inflation tax. That means consumer prices are headed much higher.”
“Consumer prices spiked .6% in March, the biggest monthly jump since 2012. The Jan. rise was .3% and the Feb. gain was .4%. That puts the quarterly rise at 1.013%. Annualized the rate is over 4%. But extrapolating the monthly trend to Dec. results in a yearly CPI surge above 10%.”
“Budget deficit surges to record $1.7 trillion in just six months … We’re on Autopilot Down the Road Toward Inflation.”