All the talk lately by some political hacks seem to try to place the blame on the debt ceiling on Joe Biden and the Democrats. The chart above clearly shows that the problem with rising national debt is NOT just the fault of 1 political party.
Reality check time – The bi-partisan Committee for a Responsible Federal Budget has recently determined that the National debt went up 8.4 trillion dollars due to the things Donald Trump and his Congress did.
The big tax cuts mainly to the wealthy and businesses raised the debt 2.5 trillion dollars.
The pandemic relief spending to individuals and businesses raised the debt 3.6 trillion dollars.
The spending increases in the bills that Congress passed, and he signed raised the debt 2.3 trillion dollars.
To offset the increases in the debt, Donald Trump decided to raise tariffs for incoming goods from other countries (mainly aimed at imports from China).
The tariffs reduced the National debt by merely 445 billion dollars.
The tariff was actually paid for by the consumer, as the increased cost was simply passed on to them and helped caused the inflation we are still battling today.
Nicki Hailey actually called this out in one of the debates and the facts were broomed under the rug. What the hell has reality to do with anything anyways?
Yes, the National debt level needs to be addressed. It starts with having to swallow very bitter pills that most average Americans will not want to deal with.
Spending must be offset by Revenue.
Spend less and you won’t need to raise as much Revenue.
When you raise Revenue, do it fairly and proportionally with those that have it.
Don’t be ignorant of the fact that increases in revenue from businesses will be offset by increases in pricing of goods and services. This will cause inflation.
The debt level only goes up, when more is spent than what is taken in. The United States of America has a number of ways it uses to take in revenue. Taxes, Tariffs, Bonds, Securities, and Exports.
The rest of the world economies trust the United States will meet their lending obligations more so than any other country on earth. Therefore, the Bonds and Securities sold to offset the majority of the National debt is a buffer we must always maintain. We cannot default on our obligations without potentially causing a worldwide monetary crisis. That would also create pressure on many countries to move away from the U.S dollar as the standard monetary value traded in the world. Since we have control of the value of the U.S. dollar, it creates many advantages that the United States need to maintain our debt balance.
Political escapades by some members in Congress, is NOT the appropriate way to deal with the problem of our National debt. Calmer, and more intelligent heads, must be called upon to collectively come up with a plan.
In the meanwhile, just remember the next time it comes up in a political debate. The problem wasn’t created, and won’t be solved, by just one political party. The sooner the leadership of both parties come to that realization, the better.
Ruminati 