Our country is suffering from record spending, debt, and budget deficits, which are driving inflation. That's why bond yields are soaring even as the Fed cuts interest rates. Despite record spending, there will not be enough money to rebuild communities destroyed by Hurricane Helen without passing additional disaster spending bills that push us further into debt. Or is there another option?
I promised my wife that we would remodel our old kitchen before inflation became serious. In a sense, I had already appropriated the funds, but before I could use them, inflation destroyed my finances. Like other families, we canceled projects and used the money to cover basic expenses. Unlike the federal government, you can't spend all your savings because you have to save for emergencies.
Isn't it obvious that North Carolina residents are prioritized over Ukraine?
Congress, on the other hand, loves to spend all the money available without considering that natural disasters are certain to occur. AccuWeather has already estimated that rebuilding from the hurricane could cost $110 billion. Congress will no doubt pass additional spending bills during the lame duck session, or sooner, to help those who have lost everything. This is a goal we all support.
But should our government do what other families do and cut wasteful spending to pay for disaster bills? It is best to start with unused allocated funds.
The main factors that bankrupted us were the collection of legislation passed under the Biden administration and the trillions of dollars in fiscal and monetary spending in the immediate aftermath of COVID-19. These bills include the 2021 Coronavirus Relief Act and the American Rescue Plan. Multi-Trillion Dollar Infrastructure Act of 2021. CHIPS and Science Law 2022. and the Green New Deal, also known as the Anti-Inflation Act.
How much of that money is there? already Was it spent?
According to an analysis by PoliticoOf the $1.1 trillion provided in direct subsidies for “climate, energy, and infrastructure” by these laws, less than 17% has been spent as of April. This means that nearly $900 billion remained unspent as of this spring, even two years after the passage of these bills.
Sensing that President Trump might return to office next year, the Biden administration has accelerated the pace of spending since April. In an interview with Politico last week, Ali Zaidi, the Biden administration's climate change secretary, said: “The Biden-Harris administration is focused on getting through the next few months at full speed, with a relentless focus on execution. ” he said. “We are making the largest climate change investment in the history of the world and pursuing regulatory challenges that ensure public health and environmental benefits.”
We should be able to find and repurpose enough unused funds between all of these bills to provide enough funding for the people of Western North Carolina to rebuild. Indeed, even as the Biden administration rushes to disburse IRA funds, $331 billion, primarily from the infrastructure bill, cannot be disbursed until future fiscal years and is not committed to specific vendors. This amount more than covers the entire cost of the hurricane.
Additionally, as of April, $92 billion in coronavirus funds remained unspent, of which $53 billion remained unspent. Not specified yet. Republicans promised to cancel these funds in the fiscal year 2024 budget, but backed away during passage of the final spending bill.
Next, consider funding Ukraine. The funds allocated for the new fiscal year remain unspent, although much of that spending is directed toward weapons for war and does not bring positive results for the parties involved. Isn't it obvious that North Carolina residents should be prioritized over Ukraine? Shouldn't we redirect unused green energy funds meant for wealthy corporations to disaster relief first?
Democrats claim these are important programs, but so is my kitchen remodel. Just as the American people must prioritize in times of crisis, so too must the federal government. If they spend all the money and pass new disaster legislation without offsets, all Americans will be burdened with higher prices for essential goods and services.
As for Republicans, if they can't fight to remove even a fraction of unspent funds to programs that should never have been funded, what are they campaigning for this November? We have no right to talk about inflation unless we can do something to force the modest cost-cutting that every household does every day.
