So, another $4.5 trillion in federal spending is just what the country needs, right?
The Senate Democrats on the budget committee have proposed the budget resolution that would do just that.
They’re proud of it, and so is President Biden, so I don’t want to be the skunk at the garden party. I don’t want to be the guy that takes away the punch bowl, but I think most folks know that we already have a post-pandemic economic boom, and whether it’s temporary or not, a big increase in inflation.
So seriously, do we need this $4.5 trillion?
Let’s say over 10 years, it would come to $450 billion dollars a year in additional spending. We already had $2 trillion in emergency spending last March and the Federal Reserve has been buying two-thirds of all new Treasury debt, so they would be pumping in another 300 billion, or so per year in high-powered cash. That’s not going to diminish inflation.