On Wednesday night, the House passed one of the following bills: The worst debt ceiling deal It went down in American history for failing to provide the suffering American people with the financial responsibility they needed.
In fact, the pact perpetuated most of the same reckless policies that contributed to stagflation, economically distressed americans. Wages have not kept up with inflation on an annual basis for more than two years, despite a relatively strong labor market. Home ownership has become unattainable for many, and soaring prices are making home ownership difficult. more than half of the adult population to reduce their savings.
One might think that such pervasive suffering would motivate Congress to reform its fiscal madness, but apparently not.
49 of the 50 states have balanced budget adjustments and most have spending limits, but no such rule at the federal level. The debt ceiling is the only mechanism needed to curb Congressional spending outside of elections.
Suspending the debt ceiling invites more reckless spending, which is why the national debt has skyrocketed to a whopping $31 trillion+.The net interest on the debt alone will soon over $1 trillion.
A new debt ceiling bill will allow politicians to put off paying debts to our children and grandchildren and deal with them later. By raising the debt ceiling for two more years and limiting the annual spending limit to 1% next year, there is plenty of room for more debt and spending in an already inflated budget.
Two months would be a more reasonable period to suspend the restrictions, giving Republicans and Democrats an opportunity to pursue vital spending restraints. Irresponsible spending is a bipartisan issue, but Republicans, who hold a majority in the House and are based on fiscal conservatism, have an even greater responsibility to tackle the problem.
Considering the negative impact of current government debt on inflation, interest rates and the standing of the US dollar, and the consequences of exacerbating Americans’ daily struggle to make ends meet, let alone pursue the largely destroyed American Dream. Two years is a long time.
Some argue that Congress should be budgeted like a family. But because Congress is entrusted with the people’s hard-earned taxes rather than their own, Congress should budget even more conservatively. At a time when our country is on the brink of financial crisis, unleashing spending on uncontrolled warfare without major budget reforms and necessary cuts will not promote individual liberty or economic growth. is not.
In the meantime, fiscal conservatives in Congress must continue to advocate for spending cap rules like the ones seen in states to end this crisis. It would be an excellent goal for the responsible budget to grow, if at all, at a rate that is below population growth and inflation (which represent the average taxpayer’s ability to spend).
Without significant spending cuts, Americans are expected to suffer even more. As economist Milton Friedman once said, the ultimate burden of government is not how much it taxes, but how much it spends. This debt ceiling bill was an opportunity to ease this burden, but we lost it.
Dr. Vance Zinnis the founder and president of Jin Economic Consulting LLCHost of, “Let People Prosper” Podcast, chief economist or senior researcher at multiple think tanks across the country. He previously served as Deputy Director for Economic Policy in the White House Office of Management and Budget from 2019-2020. Join the thousands of people who follow him on Twitter and enjoy his insightful comments daily @VanceGinn.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of The Daily Caller.