America headed for “absolute catastrophe” of debt collapse, warn Senators… but nobody seems to care
06/30/2019 / By JD Heyes
Democratic voters who watched their prospective 2020 presidential candidates over two nights last week were likely enthused by all the free stuff that was being promised.
Even to people who aren’t American citizens.
In addition to pledging free healthcare for illegal aliens, virtually all 20-odd candidates mentioned new ‘freebie’ programs they would try to enact if they manage to knock off POTUS Donald Trump next year.
No more college debt.
A “Green New Deal.”
“Medicare-for-All.”
In the past these candidates have also talked about subsidized housing for all, a ‘basic income,’ a much bigger minimum wage — all things that are either going to run businesses and corporations into so much debt they have to close or will bankrupt our country.
The Green New Deal, which envisions replacing all combustion engines with battery or solar power — including planes, trains, and automobiles — as well as calling for a complete energy remodel of every single building in the country, all within a decade, would alone add tens of trillions of dollars in costs to businesses and to the economy and the government.
Medicare for all would cost at least $32 trillion over 10 years, according to one study.
College debt would cost taxpayers/our government nearly $1.5 trillion (as most loans are government guaranteed).
As noted by Jon Dougherty at The National Sentinel:
In all, in a single debate appearance and using just a scratch pad, I figure these 2020 Democrats have proposed upwards of $70 to $100 trillion in new spending over, say, a decade. And no one on the NBC ‘news’ panel bothered to ask a single candidate how they would pay for all of this new spending.
It’s the same old song-and-dance from Democrats (and far too many Republicans): Spend, spend, spend now and…pay later. At some point. Maybe.
‘We have an obligation to pay for priorities’
Following the tax cuts implemented by the GOP Congress and President Trump, the U.S. government still managed a record tax collection — thanks, in large part, to the fact that Trump’s economy was/remains red-hot and more Americans were back at work.
But spending hasn’t abated. At all. In fact, deficit spending has gotten worse under the Trump administration than it was under Obama’s eight-year reign of economic terror. So that’s saying something.
And it’s not as if no one in Congress knows this. Budget hawk Sens. Rand Paul (R-Ky.) and David Purdue (R-Ga.) recently voiced their concerns that Congress’ spendthrift habits (not its revenue stream) are blasting the debt to new records daily. Worse, few in the Legislative Branch seem to care. (Related: How the federal debt went from $1 trillion to $18 trillion in 33 years.)
“The national debt topped $22 trillion this year. We’re heading for an absolute catastrophe if we don’t address the real causes of future increases to our national debt, which are Social Security, Medicare, and interest on the debt itself,” said Perdue in a statement, The Epoch Times reported.
The Georgia Republican, who used to be a Fortune 500 exec, was citing the latest economic forecast from the Congressional Budget Office, which isn’t always correct except when it comes to predicting more debt — and what will happen (collapse!) if the debt continues to rise.
The CBO said, “large budget deficits over the next 30 years are projected to drive federal debt held by the public to unprecedented levels—from 78 percent of gross domestic product (GDP) in 2019 to 144 percent by 2049.”
The last time our debt-to-GDP ratio reached that level was when it grew to 75-plus percent during the waning years of World War II, as America cranked out the war machine needed to win.
For his part, Paul said on the Senate floor that “we should not borrow the money, pull out the credit card yet again, every time a crisis occurs.
“Congress has an obligation to find lower priorities to cut to pay for higher priorities. I thought that’s what legislating was about,” he added.
His pleas are falling on deaf ears.
Read more about our exploding government debt and how it will collapse our economy at GovernmentDebt.news and Collapse.news.
Sources include:
Tagged Under: Collapse, Congress, David Perdue, debt ceiling, debt explosion, economic collapse, lawmakers, Legislative Branch, national debt, Rand Paul, risk, spending, stock market, tax collection, Trump administration
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