Basic economic theory tells us that when too many dollars chase too few goods, the result is inflation. Americans don’t need to take a course in economics to understand this concept because President Biden personally delivered a real-world example. By wasting trillions of dollars – approved by Democrats in Congress – on more government programs, more red tape, and more bureaucracy, President Biden created the worst inflation crisis that our nation has faced in over forty years. His complete lack of fiscal responsibility has left American families with less money in their pockets and more debt on their credit cards. To restore America’s economic security, we must get our fiscal house in order so that we don’t leave our children and grandchildren with insurmountable and excessive levels of debt.
First, to address our joint debt and economic crises, we must face the facts. According to a recent analysis by Moody’s Analytics – an economic research firm – American families and workers are paying an extra $1,019 to keep up with rising prices at the grocery store and the gas station compared to just three years ago. Even more alarming, prices remain an eye-popping 18% higher than compared to January of 2021, leaving less breathing room in family budgets and forcing folks to dip into their savings accounts. Elevated prices also prevent people from saving for retirement and putting money away for a rainy day. Furthermore, credit card debt surpassed a record $1.13 trillion in the last quarter of 2023, which is $50 billion higher than the previous quarter, underscoring the financial struggles of millions of Americans nationwide.
On the other hand, our $ 34 trillion national debt poses a significant threat to our economy and our national security. Currently, our national debt is increasing by roughly $318 million every hour and every American family is on the hook for over $100,000 as it relates to the debt. As a strong, fiscal conservative, another major concern for me is the fact that our interest payments on our debt have topped $659 billion, which is up $184 billion, or 39%, from a year ago. This is largely due to rate hikes by the Federal Reserve to combat inflation. Additionally, this fiscal year alone, the interest that the federal government will pay on our national debt will cost American taxpayers over $1 trillion, and in less than a decade, our interest expenses are projected to cost us $3 trillion every single year. That’s more than we spend on our annual military budget and many other initiatives.
I would also note that earlier this year, the nonpartisan Congressional Budget Office – which reports to Congress on our nation’s fiscal health – estimated that our annual budget deficit will grow from $1.6 trillion this fiscal year to $2.6 trillion over the next decade. Our national debt is even forecast to increase from 99% of Gross Domestic Product (GDP) – which is the total value of all goods and services produced in our country during the year – to 116% of GDP. This means that our cumulative debt load will be greater than the value of our total economic output.
While our nation’s financial position is daunting, we have tools at our disposal to cut back on wasteful government spending and lower costs for our families. For example, I recently voted for the Tax Relief for American Families and Workers Act, which will help grow our economy, encourage our small businesses to create more jobs, help our farmers compete with China, and reduce taxes on hardworking families. These policies will, in turn, grow our economy and help us reduce our national debt. I also support a balanced budget amendment to our Constitution so that the federal government must operate just like any family does and spend within its means.
Serving on the House Ways and Means Committee, I will continue to be a strong voice for fiscal responsibility and support commonsense policies that end reckless government spending, lower inflation, and help the American economy and our families prosper.
We are government together, and your thoughts and opinions matter to me. Please contact my office at Feenstra.House.Gov or by phone at 202-225-4426 if I can ever be of assistance. I am proud to represent our families, farmers, Main Street businesses, and rural communities in Congress.
