SCARY: Economics expert explains what will happen to Americans if our national debt continues to grow



Joe Biden says a lot of crazy things, but perhaps the craziest is his claim that he’s lowered the U.S. deficit, which Stu Burguiere says “couldn’t be farther from the truth.”

Brian Riedl, senior fellow at the Manhattan Institute and an expert in budgeting, taxes, and economic policy, confirms that Biden is indeed lying.

“Last year, the deficit doubled from $1 trillion to $2 trillion – the largest share of the economy in American history, outside of wars and recession,” he tells Stu, adding that despite what Biden says, “the deficit is growing enormously.”

“The president has already added $5 trillion to 10-year deficits if you add up all the legislation he's signed. The fact that he claims he's reducing deficits is completely and mathematically absurd,” he continues.

“I assume what [Biden] is trying to do here is just compare it to peak COVID spending,” says Stu, “which of course is spending that he wholeheartedly approved and actually wanted more of.”

“The proper way to measure deficits is how they're doing compared to the baseline that was already expected by budget estimators,” Riedl says. “When the president took office, the Congressional Budget Office said the deficit will automatically fall to $ trillion and stay there for the next couple of years with the pandemic ending. Instead, [Biden] ran a $2 trillion deficit, so he's growing the deficit above the baseline, not reducing it.”

So just how bad is the situation?

According to Stu, “long-term, this gets incredibly ugly, really, really fast” and is “completely unsustainable.”

Riedl confirms this: “Yes, long-term, the numbers are totally unsustainable. If you assume current policies are extended, the budget deficit is going to go to 14% of GDP per year in a couple of decades. Historically, it's been 3% of GDP. The debt could grow to 200%-300% of the economy, depending on interest rates.”

Those are scary numbers. So what does that mean for the average American when the debt gets that big?

“It means that as much as half to two-thirds of your taxes will go into paying interest on the debt within the next couple of decades,” says Riedl, “and in fact, if interest rates keep rising, there's a scenario in which 100% of your taxes will just go into paying interest on the debt, as it becomes the biggest program in the entire budget.”

Further, granted “the path we're on, middle-class taxes will eventually double.”

“That's the danger of having debt go to 200%-300% of GDP. And that's the situation that the president is doing nothing about and in fact is pouring gasoline on the fire,” Riedl warns.


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Student Loan And Big Bank Bailouts Won’t Help When The National Debt Crisis Comes

The losses will pile up, and American taxpayers will foot the bill until they no longer can.

AOC pleads with Biden to cancel more student debt ahead of the 2022 midterm elections



U.S. Rep. Alexandria Ocasio-Cortez (D-N.Y.) urged President Joe Biden to pursue student loan debt cancelation. She told the New Yorker that she believes that student debt forgives is crucial if the Democrats are to have “any chance” in the 2022 midterm elections, Newsweek reported.

AOC told the New Yorker that the Biden administration’s “hesitancy” on the issue of the growing student debt crisis has a demoralizing effect on a voting bloc that Democrats across the country rely upon, Newsweek said.

She told the outlet, “I can’t underscore how much the hesitance of the Biden administration to pursue student-loan cancellation has demoralized a very critical voting block that the President, the House, and the Senate need in order to have any chance at preserving our majority.”

The congresswoman suggested that Biden had “a reluctance to use executive power” and that he “has not been using his executive power to the extent that some would say is necessary.”

She said, “One of the single most impactful things President Biden can do is pursue student-loan cancellation. It is entirely within his power.”

“This really isn’t a conversation about providing relief to a small, niche group of people,” AOC continued. "It’s very much a keystone action politically. I think it’s a keystone action economically as well.”

Some of AOC’s congressional colleagues in the U.S. Senate, like Elizabeth Warren (D-Mass.) and Chuck Schumer (D-N.Y.), have also urged the president to cancel up to $50,000 in student loan debt through an executive order.

This past December, Rep. Ayanna Pressley (D-Mass.), AOC’s colleague in the far-left “Squad,” referred to existing student debt policy as “violence.”

Let\u2019s make it plain: student debt is policy violence.\n\nWe\u2019ll keep fighting to relieve families across the country, to make sure our policies & budgets reflect their lived experiences & that we build this grassroots movement to #CancelStudentDebt together
— Ayanna Pressley (@Ayanna Pressley) 1639753338

While on the 2020 campaign trail, then-candidate Biden promised to cancel at least five figures of student debt per borrower.

In April of 2020, Biden called for “an immediate cancelation of a minimum of $10,000 per person” in “immediate relief.” In the same address, Biden pledged that his “next step in building on the progressive vision for the country” was “forgiving student debt for low-income and middle class people who have attended public colleges and universities.”

A few months later, he reaffirmed this commitment.

Additionally, we should forgive a minimum of $10,000/person of federal student loans, as proposed by Senator Warren and colleagues. Young people and other student debt holders bore the brunt of the last crisis. It shouldn't happen again.
— Joe Biden (@Joe Biden) 1584919716

After assuming office, Business Insider reported that Biden said he was “prepared to write off the $10,000 debt but not $50 [thousand], because I don’t think I have the authority to do it.”

In December, the Biden administration announced that the COVID-19 era pause on federal student loan payments would end, and debtors would be expected to once again make monthly payments.

This announcement disappointed many of the President’s progressive allies.

638,000 people have received student loan forgiveness under the Biden Administration & their lives have improved!\n\nBut let me get this straight: for the other 98.6% of borrowers, payments are turning on next month w/o any forgiveness at all? Not even the $10k?\n\nThis will be bad.
— Mckayla Wilkes for Congress (@Mckayla Wilkes for Congress) 1639424668

AOC’s concerns about losing the Democratic majority in Congress may be warranted. After all, Republicans are currently positioned to make massive gains in the House of Representatives and have a 73% chance of winning a majority in the Senate in the 2022 midterm elections.