Staff Reports
The Congressional Budget Office just dropped a truth bomb on all of us: the federal budget deficit for this fiscal year is about to skyrocket to a whopping $1.9 trillion, a cool $400 billion jump from their previous estimate back in February. And who do we have to thank for this colossal mess? Well, none other than President Joe Biden and his grand plan for student debt relief.
According to the CBO, a big chunk of this deficit surge is directly linked to changes made by the Biden administration to student loan repayment plans, including a fancy new forgiveness program that could wipe out interest for millions of borrowers. But hold on to your wallets, folks, because that’s not the worst part. Brace yourselves for a mind-boggling national debt projection of nearly $57 trillion by 2034, with spending on Social Security, Medicare, and interest payments skyrocketing while revenues lag behind.
YIKES! You Won't Believe How Much Biden's Student Loan 'Forgiveness' Adds to the Deficit https://t.co/sLDqHllMEx . #Trump2024 pic.twitter.com/MZSLhX3xpA
— NahBabyNah #Trump (@NahBabyNah) June 21, 2024
Oh, but wait, there’s more! The CBO is throwing shade at the Federal Deposit Insurance Corporation for not recovering funds quick enough from bank failures, leading to a $70 billion hit on deposit insurance outlays. And let’s not forget the cherry on top: higher projected discretionary spending thanks to new legislation, and a cool $50 billion extra for Medicaid because, surprise, the actual spending is way higher than anticipated.
Now, remember when Biden boasted about reducing the debt by $1.7 trillion in his first two years? Yeah, that was just smoke and mirrors, folks. Fact-checkers like PolitiFact and even good ol’ CNN have called him out on that one. The reality is staring us in the face: a projected deficit of $2 trillion for FY2024 and a mind-blowing $2.8 trillion for FY2034, both courtesy of the White House.
Michael Peterson from the Peter G. Peterson Foundation hit the nail on the head when he said we need to start talking about these fiscal challenges seriously. And you know what? He’s absolutely right. The time for action is now, before we drown in a sea of red ink and broken promises.
