The Biden Administration has relied on increased public spending as an economic and electoral policy tool. According to the Committee for a Responsible Federal Budget (CRFB), since the day Joe Biden took office, public spending has generated a debt of 4.83 trillion (trillion) dollars.
The main spending item is linked to the American Rescue Plan, which has increased borrowing by $1.85 trillion. This spending has been channeled through local governments, and is earmarked for pandemic assistance, extension of unemployment benefits, and others.
700 billion in interest
It is followed by the $750 billion college student debt forgiveness, the Omnibus FY 2022, $625 billion in discretionary spending, and then the $370 billion Infrastructure Investment and Jobs Act of 2021. The CRFB takes into account seven other laws, including the Inflation Reduction Law.
And all of this is not enough to calculate what the cost of increased debt spending is, because all of that spending has a financial cost. The interest on the debt generated by the Biden Administration's spending plans is another $700 billion.
36,813 dollars per household
The total spending increases the debt by $4.83 trillion, which, divided by the 131,202,000 households in America, means that, on average, the spending approved by Biden means a debt of $36,813.
According to the U.S. Debt Clock, the federal debt exceeds $30.93 trillion, so each citizen is $92,835 in debt, and each taxpayer has to deal with $245,822 in debt. In 1960, debt accounted for 52.37% of GDP. In 1980, it was 34.67%, and 20 years later it was 56.14%. At present, it amounts to 124.67% of GDP.
31 billion (trillion)
But according to the Treasury Department itself, borrowing has now exceeded 31 trillion in debt. In particular, according to a Treasury report, the federal debt amounts to 31,064,646 million dollars. This means that the level of indebtedness is very close to reaching the limit set by Congress, which is 31,381,463 million.
The federal debt reached $30 trillion on January 31. This means that the debt has increased by one trillion in eight months and four days. Those nearly 317 billion remaining until the debt ceiling is reached in just two and a half months. The elections are on November 8, but the new Congress does not begin its term until January 2023, so raising the debt ceiling will be one of the last tasks of the 117th Congress.
