The Democrat-led House has passed a $1.9 trillion pandemic “relief” bill which provides limited relief and lots of Democrat goodies to their special interest groups, and further moves America down the path to eventual national insolvency.
The Hill reported that “The funding ranges from more than $125 billion to help K-12 schools reopen for in-person classes; $48 billion for COVID-19 testing and tracing; $7.5 billion for the Centers for Disease Control and Prevention’s vaccine distribution efforts; $21.5 billion for rental assistance; $30 billion for local subway and bus systems and $8 billion for airports that have faced drastically reduced demand as fewer people travel regularly; and $28.6 billion for the restaurant industry.”
The Democrats passed the so-called relief bill with $312 billion dedicated to policies that have absolutely nothing to do with the pandemic.
It is one thing to send out stimulus checks and support small businesses, but why do teachers and schools need to be funded as well as state and local governments?
It is pathetic how beholden the Democrats are to the teachers’ unions.
Across the countries, teachers won’t even go to work, but they will still get billions in funding if the Democrats get their way.
State and local governments that have racked up massive debt should not be bailed out by taxpayers in other states that have managed their finances properly.
Oh, and what would our country do without the National Endowments for the Arts and Humanities, who received $270 million.?
Where is this money coming from?
That is a rhetorical question of course.
The Federal Government is spending money we don’t have.
The national debt spiked to $27 trillion, up from $22 trillion at the start of last year. Who is buying government debt? Answer: The Federal Reserve.
That’s right, the Fed is “monetizing the debt” by buying Treasury Bonds. Try and wrap your mind around that for a moment.
By buying government debt from private investors, the Fed makes the remaining bonds more valuable. These higher-value Treasuries don’t have to pay as much in interest to get buyers.
The lower yield drives down interest rates on the US debt. Lower interest rates mean the government doesn’t have to spend as much to pay off its loans. That’s money it can use for other programs.
In his testimony to Congress, Boston University economist Laurence J. Kotlikoff said, “America is broke today…indeed, it may well be in worse fiscal shape than any developed country, including Greece.”
By his projections, the Federal Government has $215 Trillion of unfunded liabilities. Most of these liabilities are driven by Social Security, Medicare, and Medicaid. These programs account for 60% of the yearly federal budget. The costs of these programs will continue to rise as more and more Baby Boomers retire.
But who cares about future generations? The current crop of politicians will be long gone by the time America becomes insolvent.
If history has taught us anything, it’s that you can’t print your way out of financial catastrophe. The printing press is the cause of economic Armageddon, never the cure.
The laws of economics don’t change, and they never will.