US Government Debt Approaches $31 TRILLION Due to Biden Spending on Semiconductors, Student Loans and Green Plans
US government debt approaches $31 TRILLION for the first time ever and continues to rise thanks to Joe Biden’s semiconductor pledge, student loan waiver and green plans… despite the Covid spending cut
- The national deficit is on track to reach $31 trillion this month
- President Joe Biden continues to increase US spending, including on student loan forgiveness, semiconductor chip manufacturing and green initiatives
- COVID spending has finally stopped after $4.5 trillion was allocated to help American people and businesses during the pandemic
- Biden has touted deficit decline as a result of health emergency
- Total debt has continued to rise and skyrocketed during Biden’s presidency
- In Biden’s two years, the US has seen record high inflation and gas prices, along with a recession after two consecutive quarters of negative GDP growth
The national debt is already set to hit $31 trillion this month — another milestone that showcases the US’s dire financial situation as President Joe Biden continues to tout economic victories.
While the massive increase in spending has been quelled by the coronavirus pandemic, due to multi-trillion dollar aid packages, the economy has not recovered from the health crisis as expected.
A debt calculator shows $30.88 trillion Monday night, with the numbers rising by the thousands every second.
Republicans have rejected the current administration’s Democratic initiatives to tackle debt at exponential levels — even amid record high inflation and gas prices and a recession with two consecutive quarters of negative GDP growth.
Biden last month announced his administration’s plan to wipe out $10,000 in student loans for borrowers making less than $125,000 individually or $250,000 collectively. That forgiveness amount would add up to $20,000 if the borrower was a Pell Grant recipient.
While there is a range of estimates, one study suggests that taxpayers could end up paying $1 trillion to pay off student debt that will now be forgiven. A separate analysis says the plan could cost any American more than $2,000 in taxes a year, even those who didn’t take advantage of the relief.
The national deficit is on track to hit $31 trillion as early as this month — as President Joe Biden continues to ramp up spending, including student loan forgiveness, semiconductor chip manufacturing and green initiatives
Another major expense comes from recently passed legislation that would allocate $200 billion over the next five years to boost U.S. production of semiconductor chips.
The CHIPS and Science Act is intended to help improve competition with China, as many US manufacturers have been forced to import chips for lack of a market in America.
Semiconductor chips are essential for the production of cars, smartphones and some medical devices.
Biden’s famous Inflation Reduction Act includes $433 billion in new spending, the bulk of which — $369 billion — goes to energy security and climate change initiatives.
During COVID-19, the US has allocated $4.5 trillion to individuals and businesses to help with economic hardship. But Republicans warned that the final package may have gone too far and added unnecessarily to the national debt.
Signs that the pandemic is over include Biden ending the federal moratorium on student loan repayments. He extended the coronavirus-triggered break for the fifth and final time last month, and borrowers must resume payments in January 2023.
The final extension of the break came at the same time as Biden announced his plan to forgive between $10,000 and $20,000 for a huge number of Americans with outstanding federal student loans.
Despite the economic troubles, Biden boasts of a dramatic decline in the annual budget deficit under his leadership, which is mainly a recovery figure due to the slowdown in the coronavirus pandemic.
Some of Biden’s huge spending could cost US taxpayers $1 trillion after the president announced $10,000 to $20,000 in student loan forgiveness for borrowers earning less than $125,000
“You know, Republicans talk about being fiscally responsible,” Biden said at a Democratic National Committee (DNC) reception last week. “Last year I reduced the deficit by $350 billion. You know how much this year, not counting the Medicaid changes? A trillion seven hundred billion dollars.”
“So I don’t want to hear from Republicans about fiscal responsibility,” the president added.
COVID led to a sharp economic downturn in 2020, with the government spending a record $3.1 trillion more than the revenue it brought in.
In 2021, after Biden took office, the budget deficit fell marginally to $2.8 trillion and is expected to be somewhere near $1 trillion by the end of the current fiscal year on September 30, 2022.
Pressure on the federal government to keep pumping cash — including to cancel even more student loans, bolster green initiatives and increase competitiveness — will only add to the rising debt bill.
The Congressional Budget Office estimates that Biden’s Inflation Reduction Act, passed and signed last month, will continue to increase the deficit through 2026.