As we remember the fallen on this most solemn of days, we should also remember the country we used to enjoy. We should also look to the future, and how our system can be fixed.
You’re about to start hearing a lot of news about the budget again. Our current spending bill ends on October 1st, necessitating another short-term spending measure.
Both sides have already begun rattling their sabers, saying they’ll hold up the process if they don’t get exactly what they want. A lot of misinformation is about to get thrown your way.
Before any of this nonsense begins, I thought you might enjoy a straight dose of the truth.
Last year’s budget deficit (Fiscal Year 2022) was officially reported at $1.375T. This number was erroneous because it included a charge for President Biden’s loan forgiveness program which artificially inflated that number by $379B.
The correct number was $996B or about 4% of our Gross Domestic Product. In most prior years where we showed a deficit, it was normally less than 2% or 3%.
The official numbers that will come out this year on the deficit will be erroneous as well. Given the Government’s Accounting Standards, the numbers will include an “Add Back” of the loan forgiveness program that was never paid out in the first place.
The correct number will end up showing a deficit of about 6.5% of GDP.
There’s no justification for expanding the cash outflows of our government by 2.5% at this time in our history. World War III didn’t just begin, and we aren’t in the middle of another Great Depression.
As a matter of fact, spending all of this extra money will do nothing but hurt our great nation, because it will increase inflation at a time when we still don’t have it under control. Let’s also remember that all of this additional debt will need to be serviced adding to our long-term problems.
This will do nothing but hurt our economy at a time when it needs to be improved.
Let me leave you with this.
Before you start jumping up and down telling me that I’m being too harsh on one side or the other, let’s remember that this problem has happened over the last few years and been promoted by both sides of the aisle. One party began the problem of overspending, and the other simply continued the process.
This isn’t a political thing. It’s an American thing.
What can we do to solve the problem? On paper, it’s always easy. In reality, it becomes a bit more difficult.
But this budget thing is about to get loud. As we remember our fallen, I thought you should have a straight dose of the truth before the cable news commentators begin their hate campaigns.
We’re all going to get through this. Let’s get through it together.
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