This One Thing Shows How Deeply Washington Is Broken

Late Friday, the White House said it would run up an additional $1.1 trillion in new debt if all its plans were carried out over the next 10 years. That would be on top of the $16.3 trillion in debt it had already planned to incur and would bring government debt to $54.5 trillion.

Official Washington’s reaction to the news, unveiled in the administration’s mid-year budget update: crickets.

Fifty years after an embattled Richard Nixon, only weeks from resigning, signed into law the bill creating the federal budget process, it has become a bipartisan pariah, the fiscal crazy uncle no one wants to talk about.

And while Congress has effectively abdicated much of its responsibility, the picture could get worse if former President Donald Trump and Republicans take aim at the few parts of the law that are still working as intended.
https://www.yahoo.com/news/one-thing-shows-deeply-washington-120011141.html


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A pretty good article on now disfunctional congress has made themselves by worrying about the next election instead of the job they were elected to do.

Budget process is only 1 of the ways congress had not done the jobs they are elected to perform.
Both parties are guilty.

 

The next administration has 3 jobs;
1) Secure the border
2) Start paying down the debt
3) Get inflation under control

It doesn't matter if it's a democrat or a republican in the oval office and it doesn't matter who controls congress. If the next administration cannot accomplish these three goals quickly nothing else will matter.

 

Not too much to disagree with.

 

Can’t disagree with any of that. Question is how to do #3? Not sure how we force companies to lower the prices of goods and services.

 

Inflation results from expansion of the money supply for government spending not covered by existing funds. We need more devalued money to buy everything as a result. It is fixed by stopping it. Reduce spending. The value of the dollar will stop decreasing in value.

 

Because of federal government's inability to kick its spending habit, it has become the greatest threat our nation faces.

 

We cannot pay doe the debt. Just cancel it and amend the constitution to prevent it from happening again.

 

We can pay it down easily. We can move 70% of what federal government does to the states, the private sector or the trash can. In fact the 10th amendment requires it.

 

How does govt spending cause prices for goods and services from private businesses to increase?

 

It doesn't. It makes the currency less valuable through money supply expansion so people have to use more dollars to buy everything. People think the problem is prices. It isn't. It is reducing the value of the currency. Prices fall and rise because of supply and demand. Government has nothing to do with it. Currency devaluation is always in gear and is permanent. The only way for government to make "prices" fall is to reduce the money supply.

 

For most people it’s the prices of things that is most concerning.

 

An economy left on it's own, that is without the govt spending
money it doesn't have, tends toward deflation as efficiency in
making things improves a bit each year.

This has been most obvious in electronics, but is in all
manufactured goods, and also in agriculture.

We only see it where the cost of manufacturing falls faster
than our overspending government devalues the currency.

 

The issue is not greedy fat cat corporations, it is government spending using credit.
Fix #2 and you fix #3.

 

Easily pay down the debt? LOL! There is NOTHING easy about it. Just to balance the budget, we have to cut $1.7 trillion of spending. That's the ENTIRE discretionary budget, inclusing defense. Let's say we would cut $1.7 trillion of spending, that's roughly 6.7% of GDP. Voila, instant recession.

This was not much better under Trump either. The deficit was almost 5% of GDP in 2019, BEFORE covid. Now, it's safe to say that Trump will be elected in November, and he already promised another round of tax cuts. This will get worse, no matter who is in office. Self-proclaimed fiscal hawks can whine about this day and night, it doesn't matter, this will not be fixed, until eventually the debt burden will be so high that we will be FORCED to address it.

One thing is sure, however, when Trump takes the reigns, all whining from the RW about government spending will quickly be forgotten.

 

Can you explain how govt spending causes prices for goods and services at private companies to increase?

 

Wow, people are just now recognizing this.. I suppose all it takes is for the right propagandist that align with those folks in denial..

Sad news is, it's to late to worry about it now.. Big changes coming as to U.S. currency, don’t take my word for it, just keep listening to the right propaganda and prepare yourself and your family..

 

Yes, we have to stop doing that. 70% of government spending flies in the face of the 10th amendment. Start cutting. Really easy.

 

It isn't the prices. It is the devaluation of the dollar through money supply expansion. It takes more dollars to buy things. Looks like price increases but it is actually decreases in the value of the dollar. Since government never reduces the money supply the "price increases" are permanent.

 

Not my job to teach economics 101. I'd suggest google.

 

If we cut the discretionary military budget to 1/10 of it's present level we would still be
safe, most likely, safer.

 

So you can’t explain it. Thanks.

 

I don't think our debt is going anywhere anytime soon.

 

Something that used to cost $5 to buy but now costs $10 is definitely an increase in price. A $5 bill isn’t now worth $2.50, right? Meaning if something does cost $5 then I can use my $5 dollar bill to buy it.

 

You are incorrect. You spent $5 dollars for less value than could in the past. The U.S. dollar has lost more than 95% of its value over my lifetime. It has never stopped happening during my life. It continues today. It is caused by expansion of the money supply. More supply, less value. Basic economics. Your $5 bill is worth 1/2 of what it was not all that long ago.

 

History proves you to be correct.