In August, the White House revised its Fiscal Year 2022 deficit down by $383 billion, bringing the projected deficit for this current fiscal year to $1.032 trillion.
That’s trillion with a T.
Despite the government operating on a trillion-dollar loss, the news media appears blissfully unaware while the White House inexplicably boasts that Joe Biden is some kind of deficit hawk.
Due to the government response to the COVID Pandemic, the annual budget deficit for the 2020 fiscal year skyrocketed to $3.1 trillion as Congress spent trillions in so-called “COVID relief” spending. This COVID relief spending continued during the 2021 fiscal year, leading to a budget deficit of $2.8 trillion.
But because much of that COVID-related spending has expired, President Biden claims to have “slashed” the budget deficit by over a trillion dollars.
That, of course, is a lie. He didn’t “slash” anything. But it is a lie, the White House is happy to exploit.
When promoting the president’s unconstitutional plan to bail out student loan debt, White House press secretary Karine Jean-Pierre boasted of this $383 billion “savings” as the reason the government could “afford” to give affluent college graduates a student debt bailout.
Does that make sense to anyone?
If the government will still have a deficit exceeding a trillion dollars, how can we “afford” bailing out as much as half a trillion dollars in student debt?
A “deficit” means the federal government is spending more than it takes in. Revising the projected deficit down by $383 billion isn’t a “savings.”
Does anyone at this White House understand math?
Back in 2020, Forbes warned that the $3 trillion deficit from the initial COVID response would lead to inflation over the next one or two years. And Forbes was right.
By continuing to run deficits exceeding a trillion dollars well after the pandemic has ended will likely continue the inflation cycle while driving up the already $30+ trillion national debt.