The Biden administration has been celebrating a $1.7 trillion drop in the deficit, but it’s not as impressive as they make it sound. 80% of that decrease came from the expiration of COVID stimulus spending and only 20% was due to a stronger-than-expected economy and higher tax revenue due to inflation.
At a press briefing, White House press secretary Karine Jean-Pierre attempted to downplay the victory lap by claiming President Joe Biden “long made reducing the deficit and being fiscally responsible as a priority”. But when Fox Business White House correspondent Edward Lawrence asked if Biden’s upcoming budget plan includes spending cuts, she evaded the question.
The truth is, the Biden administration has done far more to increase our national debt than reduce it. The Committee for a Responsible Federal Budget (CRFB) estimated that their policies would add an additional $4.8 trillion in deficits between 2021 and 2031 while initial projections from Congressional Budget Office (CBO) had the deficit at only $2.3 trillion this year – however, this number had to be increased after passage of American Rescue Plan legislation.
It appears that making good on his promise of fiscal responsibility isn’t top priority for President Joe Biden, which is why Republicans are pushing for policies that actually reduce spending – such as repealing Inflation Reduction Act which would cut $3 trillion from deficit or reinstating tax cuts implemented during Trump presidency.
These measures could go a long way towards getting us out of our current financial woes but unfortunately aren’t part of President Joe Biden’s plan yet – leaving us with more talk than action when it comes to reducing our national debt burden.
So what does this mean? It means we need better leadership and real solutions if we want to get out of this mess – and thankfully Republicans have proposed some fiscally responsible ideas that could help put us on sustainable path forward without breaking bank!