Although the spending spree was initially predicated on combatting the pandemic and stabilizing the economy, each significant piece of spending legislation contained a combination of special interest favoritism and misguided economic policy.
The scale of the spending and degree of economic malfeasance was followed quickly by economic turmoil that has reduced purchasing power for American households and created tremendous economic uncertainty.
The deficit-fueled federal spending spree delivered painful economic consequences.
Rather than ignore the wave of inflation and continue blindly spending money regardless of how little benefit the public receives in return, Congress should reconsider the wisdom of proceeding with an increase to infrastructure spending during an inflation crisis that is especially bad for road construction.
Further, the legislation makes it possible to shift a large portion of Department of Veterans Affairs spending from the discretionary spending category to mandatory, which would further exacerbate the trend of placing a growing majority of federal spending on autopilot.
Also see Federal Reserve Bank of St. Louis, Federal Reserve Economic Database, Assets: Total Assets: Total Assets: Wednesday Level, 2002 to 2022.. Thus, essentially all of the pandemic spending spree was indirectly financed through the use of newly created inflationary dollars.
Though not all the Fed's recent asset purchases have been of federal debt, other asset purchases indirectly facilitated the federal spending spree as well.
Read Full Report: https://www.heritage.org/budget-and-spending/report/the-road-inflation-how-unprecedented-federal-spending-spree-created
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