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Quick Analysis

A Campaign Built on Lies

To a degree unprecedented in American history, the 2024 Democratic Party campaign relies on clearly proven falsehoods. While many politicians unfortunately are prone to exaggerations and loose interpretations of facts, the outright lies perpetrated by the ticket are in a class all its own. 

Vice President Harris is being described as a moderate favoring the middle-class. That is despite the reality that in 2019, she was rated the most liberal Senator – even more liberal than Bernie Sanders. As Vice president, she has been a part of an administration that is by far the most progressive. That’s not the opinion of Republicans, but observers such as the pro-Democrat Washington Post

The economic policies under Biden-Harris have crippled the middle-class with dramatic inflation, a clear result of its assault on energy and its prolific spending. It refuses to acknowledge its error, which resulted in a hike in inflation from 1.4% to a high of 9%.  The current rate is 2.9%, but the damage done to prices remains unaddressed. Incredibly, despite the availability of clear sources on inflation rates, President Biden overtly lies that inflation was 9% when he took office.

Ms. Harris’ proposals emphasize her progressivism. One example: According a recent media report, she reportedly wants to force Americans to be taxed up to 44.6% of the profits they make from selling their homes. The report comes after Harris endorsed President Joe Biden’s Fiscal Year 2025 budget proposal.

The same can be said for Tim Walz. As noted by the New York Post, “After his party gained a one-seat majority in the state senate in 2022, Walz embraced nearly every insane idea it rammed through the legislature, including driver’s licenses for illegal aliens, marijuana legalization, voting rights for convicted felons, stricter gun laws, and automatic, permanent mailing of ballots to people who sign up just once to vote by mail. Walz signed a law mandating ‘antiracist’ education in ‘ethnic studies’ in elementary, middle and high schools and compelling critical race theory training for teachers while forcing schools to record the race of every student who is given recess detentions to prevent ‘institutional racism.’”

Democrats have alleged that the Trump campaign is based on megadonors. However, as reported by the New York Times, “An analysis of Federal Election Commission data by The New York Times shows that about 668,000 donors gave less than $200 to Mr. Trump, compared with 564,000 for Mr. Biden.”

Commentator Chris Cuomo has blasted the Democratic Party for pledging to go after corporations over price gouging — even as it charges big donors between $500,000 and $5 million for a luxury suite at its Chicago convention.

The Biden-Harris Administration has stated that it has a commendable record on job creation. It ignores the reality that many of those positions are not new, but merely returning after COVID. Further, rather than going to U.S. Citizens, a Congressional Committee report found that  “nearly half of all job growth since October can be attributed to immigrant groups, including illegal immigrants. “

The overall job numbers touted by the Democrats have been subjected to the sharpest downward revision in over a decade.  The Daily Political News reports that “A new economic report shocked social media users on Wednesday. The U.S. gained 818,000 fewer jobs than initially reported. The Bureau of Labor Statistics revised their numbers. They discovered over 800,000 jobs reported in March never existed. X users reacted strongly, with many blaming the Biden/Harris administration. They accused them of pushing policies that weakened the economy and then misrepresenting the numbers.”

Not unexpectedly, the Harris campaign has blamed Trump and the Republicans for the nation’s ills.  But the reality is, the Biden-Harris Administration has controlled the government for the past four years. Further, Democrats have largely controlled the federal government for 12 of the past 16 years.

Numerous speakers at the Democrat convention in Chicago have repeated long debunked claims about Trump comments, with no apparent sense of shame. One can only assume that have confidence that a biased media will not criticize them.

On defense, the manipulation of reality has been even more harsh. Democrats, while claiming a willingness to provide for an adequate defense, have, under the Biden-Harris Administration, presided over the shrinking of U.S. armed forces.  Year after year during the current White House, defense budgets have failed to keep up with inflation even as the danger of war increases and adversaries increasingly see the U.S. military as overstretched. As the Biden-Harris Administration draws to a close, the U.S. Army, Navy and Air Force are smaller than they were when it was sworn in.

The most consistent claim made by the Democratic 2024 presidential campaign is that it must win in order to “preserve democracy,” based largely on unsupported and long refuted allegations about their political opponents. But which side is actually a threat to fair play?

Forget, for a moment, about the Republicans. The treatment of fellow Democrats is telling.  Manipulating primary schedules was inappropriate.  The refusal to provide Secret Service protection to Robert F. Kennedy, Jr., despite the assassination of his father and uncle is inexcusable.

Perhaps, it is not the Democratic Party that headlines the threat to democracy. It may very well be the biased media that refuses to acknowledge the lies that politicians have been unblushingly telling.

Illustration: Pixabay

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Vernuccio-Novak Report

Red Cross Needs Your Help

Massive damage from the hurricane that hit the U.S. Southeast have left many in desperate need.  The Red Cross is doing all it can to provide assistance. To donate, go to: https://www.redcross.org/donate/donation.html/

Photo: Red Cross

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TV Program

Is There a War on Truth?

There is little doubt that the mainstream media is politically biased. Chris Burgard Director of the brand new groundbreaking documentary The War on Truth discusses how this has affected one of the major news stories of the decade. If you missed the program on your local station, watch it here https://rumble.com/v5i37f9-the-american-political-zone-october-8-2024.html

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Quick Analysis

Walz Continues Democratic Party Ties with China

The curious and worrisome relationship between the Democratic Party and Communist China is continuing with the nomination of Tim Walz.

The House Committee on Oversight and Accountability recently stated that “Walz’s connections to China raise questions about possible CCP influence in his decision-making as governor—and should he be elected, as vice president.”

A review of the record indicates that Governor Walz In 1993, according to the Star-Herald, as a teacher, organized a trip to the PRC with Alliance High School students, where costs were paid by the Chinese government. In 1994, Mr. Walz set up a private company named “Educational Travel Adventures, Inc.,” which coordinated annual student trips to the PRC until 2003 and was led by Mr. Walz himself. The corporation was reportedly dissolved four days after he took congressional office in 2007. Since his first trip to China, Governor Walz has visited the PRC an estimated 30 times. While serving in Congress, Mr. Walz also served as a fellow at the Macau Polytechnic University, a Chinese institution that characterizes itself as having a “long held devotion to and love for the motherland.” Governor Walz spoke alongside the President of the Chinese People’s Association for Friendship with Foreign Countries, which, a year later, the Department of State exposed as “a Beijing-based organization tasked with co-opting subnational governments,” including efforts “to directly and malignly influence state and local leaders to promote the PRC’s global agenda.”

In a letter to Federal Bureau of Investigation (FBI) Director Christopher Wray, Committee Chairman Comer requested information, documents, and communications related to the CCP-connected entities and officials Governor Walz has engaged and partnered with, as well as any warnings or advice the FBI may have given to Governor Walz about U.S. political figures being targeted by or recruited for CCP influence operations.

“The CCP has sought to destroy the United States through coordinated influence and infiltration campaigns that target every aspect of American life, including our own elected officials. Americans should be deeply concerned that Governor Walz, Kamala Harris’s vice-presidential running mate, has a longstanding and cozy relationship with China. Mr. Walz has visited China dozens of times, served as a fellow at a Chinese institution that maintains a devotion to the CCP, and spoke alongside the President of a Chinese organization the State Department exposed as a CCP effort to influence and co-opt local leaders. FBI briefers recently informed the Committee that the Bureau’s Foreign Influence Task Force investigates CCP activity that is similar to China’s engagement with Governor Walz. The American people deserve to fully understand how deep Governor Walz’s relationship with China goes,” said Chairman James Comer.

The Biden-Harris Administration’s relationship with China appears to have begun when Hunter Biden flew to China with then-Vice President Joe Biden aboard Air Force 2, and returned home with a vast financial gain, in return for no discernable commercial service.

The Biden-Harris Administration ties with China are just part of the Democratic Party’s concerning history with America’s most dangerous enemy.

  The late Democrat Senator from California, Dianne Feinstein, employed a chauffeur, who according to CBS News, was a Chinese spy, reporting to the Chinese government about local California politics for 20 years. 

The Chinese communist spy who compromised Congressman Eric Swalwell, Fang Fang, also “socialized, networked with Rep. Judy Chu and then-Rep. Mike Honda, campaigned for now-Rep. Rho Khanna, volunteered for Bill Harrison, the mayor of Fremont, California at the time, and in some cases, developed romantic or sexual relationships with politicians to gain intelligence and send it back to her handlers, who were believed to be stationed in mainland China.” 

Beijing’s relationship with the Biden family and the Democrat Party has allowed it to treat the U.S. with arrogance. 

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Quick Analysis

Combatting PRC Economic Strategy

The House Select Committee on the Chinese Communist Party held a hearing titled “From High Tech to Heavy Steel: Combatting the PRC’s Strategy to Dominate Semiconductors, Shipbuilding, and Drones.”

Chairman John Moolenaar describes the issue.

During the Second World War, America was called the Arsenal of Democracy. While our brave soldiers fought on the front lines, millions of men and women labored on the assembly lines to bury the Axis under a storm of steel. Today, the Chinese Communist Party aspires to become an Arsenal of Autocracy, repressing a billion people at home, and providing authoritarian regimes with the means to wage aggression abroad. To do so, the CCP seeks to control the key technologies and sectors that will determine future conflicts. We are looking in detail at three of these today: chips, ships, and drones. Chips, or semiconductors, power everything from the guidance system on missiles to satellites, mobile phones, computers, and cars. Ships transport cargo around the world and form the navies that can blockade global supply lines or enable invasions. This includes the risk to Taiwan, which would cut off the foundries that produce virtually the entire world’s supply of advanced semiconductors. Unmanned Aerial Vehicles (UAVs) or drones will play a key role in the future of civilian and military airpower. In all three, America’s industrial capacity has waned while China has gained dominance or is in the process of gaining dominance over each.

China added more legacy semiconductor manufacturing capacity in 2024 than the rest of the world combined, and that capacity is expected to grow by a further 13 percent this year alone. With 18 new fabricators set to begin operations, and the CCP announcing a further $47.5 billion in subsidies in May. Today, the U.S. accounts for one-tenth of one percent of global shipbuilding, while Chinese shipyards, with nearly 20% of their operating costs subsidized by Beijing, account for 54%. DJI, a Chinese firm, controls roughly 80 percent of the U.S. commercial drone market. To be clear, our concerns with DJI, and PRC control of the drone ecosystem, are not about the competitiveness of American companies.

Rather, Congressional concern stems from the PRC having hundreds of thousands of spy balloon equivalents operating daily across our nation–not only jeopardizing our homeland but giving the PRC a dominant position in an industry that is already playing a key role on the frontline of modern warfare.

Across each of these sectors, the CCP playbook is simple, straightforward, and consistent. Using a combination of illegal subsidies, hardball tactics, IP theft, and forced labor, the party gains a stranglehold over the world’s most important supply chains. From Huawei, to SMIC, YMTC, DJI, and beyond, it’s the same play every time. In fact, we call it “the Huawei Playbook.” Pick a national champion in a strategic industry. Subsidize. Employ predatory pricing to offer its products at a massive, anti-competitive price point. Expand globally. Drive out the competition. Then leverage newfound dependencies to advance CCP interests. Like a football team running the triple option, it’s an effective play, and it can be hard to defend. But once you see the pattern, you can understand how to defeat it. We need to install market access barriers in strategic sectors to prevent malign PRC companies from taking over our domestic economy. We need to leverage and build upon crucial authorities to ensure the security of data and communications across our country. We need to cut off access to the U.S. technology and capital that helps fuel PRC national champions and critical sectors. And we need to coordinate with our allies to encourage them to mirror these steps.

Fortunately, there are those of us who have been watching the tape of similar games that threatened similar outcomes. Semiconductors were an American invention. The Soviets copied us. Others underpriced us. There were times when observers counted America out. But as Chris Miller, who is here with us today, documented in his exceptional book Chip War, no one has ever been rewarded for betting against America. We are joined today by Adam Bry, the founder and CEO of Skydio, an American drone manufacturer. American-made technology is safer, higher quality, and does not come with links to a totalitarian regime. I look forward to hearing Adam’s perspective on competing with the CCP’s economic warfare. We are also joined by Scott Paul from the Alliance for American Manufacturing. Scott has seen the CCP decimate the American manufacturing sector. And nowhere is this more costly for our nation than in our shipyards. The CCP is producing ships at a rate we couldn’t dream of here. Though they’re made using cheap steel and shoddy market practices, the People’s Liberation Army Navy represents a grave threat to the US and our allies.

Photo: Pixabay

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Quick Analysis

China’s Rapidly Growing Nuke Threat

For too long, China’s rapid increase in military power has been downplayed. That is a result of Beijing’s skillful use of economic influence over both key politicians and media outlets.  The problem has become a crisis during the Biden Administration.

 In 2021, key members of The House Armed Services Committee (HASC) reviewed testimony from Admiral Charles Richard, the Commander of U.S. Strategic Command, that China has moved a portion of its nuclear force to a Launch on Warning posture and has a nuclear weapons stockpile that is expected to at least double, if not triple, or quadruple, over the next decade. Based on most opensource estimates, to include those produced by the Department of Defense, this could bring size of the deployed Chinese nuclear deterrent to approximately 1,000 warheads by 2030. According to the China is fielding a full Cold War-style triad of nuclear assets — intercontinental ballistic missiles, nuclear-armed bombers and submarines capable of launching ballistic missiles. China’s ballistic missile arsenal is “more survivable, more diverse, and on higher alert than in the past, including nuclear missile systems designed to manage regional escalation and ensure an intercontinental second-strike capability.” Combined, these statements by Admiral Richard and Director Haines mean that China is likely to reach a degree of nuclear parity with the United States by the end of the decade.

  Some outlets are beginning to comprehend the magnitude of the threat. In June, a Bloomberg report noted that “The US Needs More Nukes…Some Americans worry that building up the arsenal will start an arms race. Sorry, but China has already begun one.”

A Lowey analysis, citing information from the Bulletin of Atomic Scientists’ 2024 Nuclear Notebook warns that “Of the nine nuclear-armed powers, China is thought to have one of the fastest-growing nuclear arsenals at present. Last October, the US Department of Defence in its 2023 Annual Report made two forecasts: First, as of May 2023, China has more than 500 active nuclear weapons, exceeding earlier estimates. The 2022 report estimated that the stockpile had surpassed 400 nuclear warheads. Second, in keeping with its modernisation objectives, China is expected to have more than 1,000 operable nuclear weapons by 2030, many of which will probably be “’deployed at higher readiness levels.’ … if China continues with the pace of its nuclear expansion, at the rate anticipated in 2022, China is likely to have a stockpile of about 1,500 warheads by 2035, the timeline by which the Chinese military plans to “basically complete modernisation”. The New York Times also reported in December last year that China may be preparing a military installation to ‘test a new generation of nuclear weapons.'”

A Federation of American Scientist Nuclear Information Project examination reveals that its not just nuclear bombs bit also the means to launch those devices that have increased in number. The study states that “China has continued to develop its three new missile silo fields for solid-fuel intercontinental ballistic missiles (ICBMs), expand the construction of new silos for its liquid-fuel DF-5 ICBMs, and has been developing new variants of ICBMs and advanced strategic delivery systems. China has further expanded its dual-capable DF-26 intermediate-range ballistic missile (IRBM) force, which appears to have completely replaced the medium-range DF-21 in the nuclear role. China has been refitting its Type 094 ballistic missile submarines with the longer-range JL-3 submarine-launched ballistic missile (SLBM). China has recently reassigned an operational nuclear mission to its bombers and is developing an air-launched ballistic missile (ALBM) that might have nuclear capability.”

While Beijing is swiftly growing its atomic forces, the U.S. is heading in the opposite direction. In January, Senator Roger Wicker (R-Mississippi) warned “…critical updates to our arsenal are underfunded and behind schedule. Congress and the White House must act quickly to solve these problems and prevent more from emerging…. Satellite imagery reveals that China has built more than 300 new ICBM silos since at least 2021—more than the U.S. has constructed in the last five decades. Beijing has tested a new weapon capable of orbital nuclear attacks with almost no warning and set a pace to exceed the size of the U.S. nuclear arsenal by 2030. Russia already commands the world’s largest nuclear force. It is now fielding heavy ICBMs of almost unlimited range. The Kremlin also boasts a 10-to-1 advantage over the U.S. in shorter-range tactical nuclear weapons, as well as intercontinental-range nuclear-powered torpedoes and cruise missiles…the Biden administration’s economic policies and anemic military support have forced … all our urgently needed modernization efforts—to overcome staggering inflation and a lack of crucial technology suppliers, skilled labor and raw materials…”

Photo: China reveals its most advanced nuclear-armed intercontinental ballistic missile, the DF-41, at the National Day parade in Beijing on October 1, 2019. Photo: Fan Lingzhi/GT

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NY Analysis

Russian-Finnish Border

By their nature successful borders need to be occupied with cooperation from both sides. That type of relationship exists currently on Russia’s eastern front with China. Since World War II it also has existed on Russia’s west with Finland. This year, however,  the Russo-Finnish border relationship is showing indications that it is deteriorating. Its loss of integrity is emerging as a flashpoint between Helsinki and Moscow, as well as emerging as a potential North Atlantic Treaty Organization (NATO) security issue.

There is a little-known area called the Saimaa Canal that was built in 1856 and has been upgraded a number of times to accommodate modern shipping requirements. It links Lake Saimaa to the Gulf of Finland. The Canal passes through 21 miles of Russian territory. Both nation-states have reduced their use of the canal due to sanctions, countersanctions, and fear that its use could pose a national security threat with unintended consequences. 

Finland “rents” the waterway from Russia and uses it for the transportation of consumer goods from areas as far away as China. It is the sole agreement Russia has with a foreign state to “rent” out its territory. Many political leaders in the Kremlin want it to end. Military analysts in Washington believe that Putin is seriously considering canceling the bilateral agreement. Loss of the commercial waterway will hurt both countries. The situation escalated after Russia’s invasion of Ukraine and intensified after Finland joined NATO in 2023. This fall it is not only a growing point of contention between the Russian Federation and NATO, but China is also becoming involved as it represents a potential loss of one of its important trade routes. 

Since Russia’s invasion of Ukraine traffic on the waterway has almost slowed to a halt. Leaders in Helsinki view the potential loss of the Canal as an attempt by Putin to undermine Finland’s independence. From Moscow’s perspective, it is convinced that “NATO is planning to use the waterway to invade Russi if Putin’s oft-threatened war between Russia and the West breaks out in earnest,” says Paul Goble of the Jamestown Foundation. EU sanctions, he adds, limit Russian transit through the canal and stops at its various ports. Russian counter-sanctions on Finland reduced trade going in the other direction. Finland believes conflict could break out if Russia uses covert forces or sends in large numbers of refugees.

On September 11, the Finish Ministry of Transport and Communications announced it was indefinitely suspending the Saimaa Canal Advisory Board that oversees canal cooperation with Moscow. “Last week, well-connected Russian commentators suggested that the Kremlin is mulling canceling the agreement that allows Helsinki to rent the portion of the waterway on Russian territory—a step permitted this year under the most recent bilateral treaty governing the canal,” says Goble. If cancelled, it would effectively end the waterway as a trade route and have broad economic consequences for the two states directly involved and for the Central Asian states and China. Goble suggests the stage is set for it to also send “political shockwaves” with the potential for the shuttering of the Saimaa Canal to devolve into a major international crisis. The Russian publication TopWar.ru says that Russian rhetoric regarding Finland over the last two and a half years has become increasingly sharp, and Helsinki has responded in kind, with President Alexander Stubb declaring that his country does not fear Russia and is not about to be pushed around.

Building an alternative route would be extremely expensive for Finland. Russia would lose a valuable  source of income, totaling $1.5 million in annual canal rent, and much of its remaining leverage over Helsinki. Perhaps more significant, is that China would be enraged by the loss of the commercial waterway should Moscow back out of the agreement. Putin appears to be left with fewer and fewer options as the war drags on in Ukraine. 

Daria Novak served in the U.S. State Department

Photo: Pixabay

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TV Program

Honest Election?

Join us this week for an inside look at what is actually happening in the 2024 election.  Fred Lucas, author of the “The Myth of Voter Suppression: The Left’s assault on Clean Elections,” discusses whether this year will see an honest election.  He is the chief news correspondent of the Investigative Reporting Project for the Daily Signal.  Judge John Wilson, (ret.) author of several books on the lawfare assault on former president Trump, provides extraordinary insights. If you missed the program on your local channel, watch it here https://rumble.com/v5h786j-the-american-political-zone-october-1-2024.html

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Quick Analysis

It’s Not Incompetence, It’s Intentional

Taking a look at the horrific headlines facing the nation, it would be understandable to conclude that there is massive incompetence at the federal, state and local levels.

Why would any executive, legislator, or law enforcement official such as an attorney general or district attorney let repeat felons continuously out on low or no bail? Why would they penalize heroes who seek to defend themselves and others from assailants? Who in their right mind would “Defund the Police” in an era of rising crime?

Why would Washington leave the nation’s borders wide open to millions, despite the skyrocketing rise to power of drug cartels, human traffickers, and organized criminal gangs?

Why do state boards of education ignore the transfer of funds meant for academic subjects towards propaganda that vilifies the United States?

How could Washington enact, year after year absurd budgets that spend far more than is taken in by taxes? Why do they act as though essential items, such as defense, preserving social security, and other needs, have the same priority as pork barrel projects?

Why would the White House adopt scientifically unsound energy policies that result in spiraling inflation?
 

Of course, it is not that our elected officials are so incompetent that that they cannot understand how foolish their policies are. They hear the anguish of the residents of cities as they increasingly fall victim to crimes. They can clearly observe the devastation illegal immigration has produced throughout the nation. Despite all attempts at censorship, they know the American public sees through their nonsensical slander of more conservative political opponents, and that voters are sickened by attempts to divide the nation. Families know that the government cannot continue to spend more than they take in.

The fact is, it is not incompetence.  It is the pursuit of goals so alien to the American way of life and so contrary to the nation’s Constitution that motivates the elected officials, media kingpins, and academic elites that motivate these bizarre policies.

Underlying all of this is an attempt to end the capitalist economic system, and to eliminate the ability of the Bill of Rights and the legacy of personal freedom that would stand in the way of that goal.  That includes the right to inculcate your own children with the morals that you believe in, and the ability to pass on your assets to them.

Defending your property against thieves indicates that you have property rights in the first place, so worrying about criminals taking what doesn’t belong to them is not a priority. Pointing out that your tax dollars shouldn’t go to illegal aliens who have not produced anything is pointless to progressive leaders who don’t believe that the fruit of your labor belongs to you. They want to flood the nation with illegals who were not brought up in the history of individual rights, and who want and need a strong government to decide how to distribute income is an essential part of their gameplan.

They don’t care if their policies have made food, shelter and energy unaffordable, because that increases reliance on the government to bail you out and make you wholly dependent on them. Achieving the ability to fend for yourself is a distraction from the goal of giving the government the power to decide what you should spend your money on.

 That especially applies to your personal vehicles.  So what if you can’t afford to fuel your car?  The concept of personal transportation freedom is anathema to the advocates of socialism. To them, the government should decide when, where, and how to travel.

Illustration: Pixabay

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Quick Analysis

America’s Crippling Debt Crisis

From the time that the first pioneers arrived at Plymouth Rock and Jamestown, America had always been a forward-looking nation. Now, however, it is mortgaging its future to pay for programs it simply can’t afford. The problem had been growing for decades, but the acceleration under the current Administration has reached a breaking point.

The problem is so vast that interest expenses on the national debt, now reaching $35 trillion, exceeds what America spends on its own national defense.

 In the current federal fiscal year, which began in October, interest payments have reached $514 billion dollars. The problem is accelerating. The deficit totaled $1.6 trillion in fiscal year 2024, grows to $1.8 trillion in 2025, and then returns to $1.6 trillion by 2027. Thereafter, deficits steadily mount, reaching $2.6 trillion in 2034.  Those deficits will have to be paid for by borrowing, and interest rates will grow accordingly.

According to the Congressional Budget Office “Since the Great Depression, deficits have exceeded that level only during and shortly after World War II, the 2007–2009 financial crisis, and the corona­virus pandemic. Debt held by the public rises each year in relation to the size of the economy, reaching 116 percent of GDP in 2034—an amount greater than at any point in the nation’s history. From 2024 to 2034, increases in mandatory spending and interest costs outpace declines in discretionary spending and growth in revenues and the economy, driving up debt. That trend persists, pushing federal debt to 172 percent of GDP in 2054.”

If the U.S. government were a private company, it would be staring at bankruptcy. 

The problem hits every American hard through inflation. The Committee for a Responsible Federal Budget describes the impact on the economy: “Higher interest rates on federal debt and bank reserves increase interest rates throughout the economy on everything from mortgages to student loans to credit cards. They also contribute to a phenomenon called ‘crowd out,’ where investors purchase government bonds instead of investing in the private sector, thus slowing economic growth. CBO estimates that for every $1 of new U.S. government borrowing, total investment falls by 33 cents and an additional 24 cents of the return to investments goes abroad, resulting in slowing income growth over time.”

 A 2023 Heritage study notes “The amount of additional spending resulting from legislation passed between March 2020 and December 2022 is astonishing: $7.5 trillion—more than $57,400 dollars per household. While federal spending per American has steadily increased in real terms over the past several decades, the pace of the increase in recent years has been shocking.”

Senator Mitch McConnell stated t last year that “Since President Biden took office, consumer prices have risen more than 16 percent. American families are paying 20 percent more to put food on the table than they did in January 2021. And 36 percent more on energy. But over more than two years of Washington Democrats’ runaway inflation, President Biden’s top advisors have refused to even admit that there’s a problem – let alone that their policies are driving it.” 

The Government Accounting Office (GAO) worries that “The federal government faces an unsustainable long-term fiscal path that poses serious economic, security, and social challenges if not addressed. Congress and the administration will need to make difficult budgetary and policy decisions to address the key drivers of federal debt and change the government’s fiscal path. The sooner actions are taken to change the long-term fiscal path, the less drastic they will need to be. Debt is projected to grow faster than the economy over the long term.”

At the end of fiscal year 2023, the $26.2 trillion in debt held by the public was about 97 percent of gross domestic product (GDP). GAO projects that under current revenue and spending policies, debt held by the public will reach its historical high of 106 percent of GDP by 2028, and grow more than twice as fast as the economy over a 30-year period, reaching 200 percent of GDP by 2050.

Perpetually rising debt as a share of GDP is unsustainable and has many direct and indirect implications on the economy and American households and individuals. Debt held by the public is projected to grow faster than GDP.

Illustration: Pixabay