Tag Archives: national debt

Jerry Bowyer: Biden’s Dangerous Spending Plan

The Obama administration was once defined by low growth and high spending. When Obama took office, our debt-to-GDP ratio was around 90 percent. Today, it has passed 105 percent.

While high debt is always a risk, you can to some extent outrun it with high growth. Under President Trump, while spending increased, it was partially offset by relatively high growth. The Obama years were bad for our economy, but our debt was low enough that we were able to avoid economic collapse.

Neither of these would be the case under a Biden administration. Our total national debt is higher than ever in peace-time, and Biden’s plan will only raise it dramatically further. He’s proposing over $5 trillion in new spending and the largest tax increase in 70 years.

Low growth, high debt and a growing tax burden: that’s a very dangerous combination, and that’s exactly what we should expect from a Biden presidency.

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David Davenport: Coronavirus and the National Debt

What do coronavirus and the national debt have in common?  The answer is China.  Due in part to secrecy and poor management in China, suddenly the world confronts a major pandemic.  We’re reminded how interconnected our world is and how vulnerable we are to China.

Perhaps this is a reason to take the national debt more seriously.  China owns approximately 5 percent of our debt and some surprise there could have a major economic effect on the US.  It could be the next housing bubble and we are woefully unprepared.

A recent report by the Congressional Budget Office says our debt will equal 98% of the nation’s total economic output by 2030.  President Trump promised to eliminate the deficit in 8 years but what we’ve seen is a nearly 50 percent increase.

Let’s tell Washington to take the debt seriously and beware a bad surprise.

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David Davenport: Tax Reform Should Not Increase The National Debt

Compromise

This is David Davenport of the Hoover Institution for Townhall.com.

One more dilemma for our leaders in Washington is that we desperately need tax reform, but we can’t afford to increase the national debt.

The debt is already large and growing. Our leaders say it’s nearly $15 trillion, but that doesn’t count another $5 trillion of debt to our own government, making the real number closer to $20 trillion. And Senator Ben Sasse has recently reminded us that even that number doesn’t count entitlement bills coming due that we can’t pay, perhaps pushing the number as high as $75 trillion.

But there are reasons to worry that it’s about to get worse. First, rising interest rates could make the debt more expensive. Second, Trump’s tax reform could bring in even less revenue. He’s counting on stimulating growth, but it will take a lot of growth to pay for lower tax rates.

Senator Mitch McConnell is right to say that tax reform must be revenue neutral to keep from growing the national debt.

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