...if the day ever comes when government can't even repay the interest on the National Debt, the illusion of solvency will disappear and the economy will collapse into calamity.
Indeed, the burden of government spending has climbed more than three times faster than inflation during De Blasio’s time in office. If this story sounds familiar, that’s because excessive spending is the cause of every fiscal crisis.
As Congress nears debate on another round of stimulus/relief aid for American households, businesses, state and local governments, schools, Covid vaccination delivery, and more, I thought it would be instructive to see how the direct aid sent as part of Stimulus 1.0 was spent.
A new report from the IRS shows that the first round of economic impact payments (or stimulus checks) primarily benefited households earning less than $100,000.
This is good news.
Less Americans getting infected, more Americans getting vaccinated, $6 trillion in government spending, with at least $4 trillion more on the table, and many trillions more from an anything-goes Fed.
What do they have in common? They’re all converging to create what giddy economists and others, like Axios’ Nicholas Johnston, say will be “a year of U.S. economic growth for the record books.”
With those kind of numbers (think 10 zeros!), it better be record-setting!
Prices at the gas pump are soaring toward an all-time high, but drivers appear to be saying, oh well—for now anyway.
Americans’ credit cards got a sweaty workout in February, as monthly consumer debt rose the highest in over a decade.
Matt Phillips believes it could mean that climbing inflation coupled with households’ diminished savings are forcing more people to use plastic.
The Fed's monthly consumer credit report for February came out yesterday, showing that consumer debt — excluding mortgage debt — jumped by $41.8 billion, or 11.3%.
Revolving credit — typically credit cards — rose by a seasonally adjusted annual rate of 21%, up from 4% the prior month. Nonrevolving credit, which includes auto and student loans, was up 8.4%.
With pandemic stimulus payments now a fading memory — and families’ record savings cushion a thing of the past — it seems a no-brainer that out of control inflation has us back to running up our personal debt.