Inflation persists due to record levels of spending over the past three years, according to Rep. David Schweikert, R-Ariz., in a speech on the House floor Thursday night.
Schweikert said the total deficit spending for FY24 will be dramatically higher than both the Congressional Budget Office (CBO) and the Office of Management and Budget (OMB) initially projected if the national debt continues to increase at the current pace of over $99,000 per second.
Last May, Congressional fights over the next speaker overshadowed the greater concern, the national debt, Schweikert said.
“And think of this — in that time, we were fighting over like $16 billion,” he said. “We’re borrowing about $9 billion a day. So we’ve gone how many months, and we’ve never gotten around to actually working on the real problems because of the theatrics around here.”
As a result, the Scottsdale-Phoenix area resident said the Congressional Budget Office missed its FY24 deficit spending projection by $1 trillion.
Interest spending alone is projected to top $1 trillion this fiscal year, he said.
“When I came here a couple of months ago and said we could be heading for $1 trillion [in interest spending], I got mocked. I even saw my colleagues go, ‘Schweikert, you’ve got to stop making things up!’ Well, turns out I’m right,” he said.
“We will spend all day fighting over a few million here, which is important, and I am willing to cut these things, but we’re picking up pennies off the ground as the avalanche is crushing us,” he continued. “Because that same day we fought over those millions, we borrowed $9 billion a day when we are fighting over millions. Understand, $1 trillion has 12 zeros. Start to work your zeros and understand the scale.”
Addressing inflation, Schweikert said America is paying the price for spending money in ways that did not actually spike productivity. He said subsidizing things does not yield the most efficient and cheap way to produce them.
Schweikert advocated for a level of competition so the best, fastest product is rewarded.
“The last two months, [inflation] hasn’t been going down the way it’s supposed to,” he said. “So expect these interest rates I just showed you to continue. And if you live in my neighborhood, if you live in the Scottsdale-Phoenix area — wonderful area, absolutely incredibly beautiful this time of year. From January 2021 to two months ago, if you’re not making 23.6% more, you are poorer today than you were in January 2021.”
Making Americans less sick with new healthcare technology is one of the most powerful things we could do to lower the national debt, he said. Six weeks ago, the FDA approved the first cure to sickle cell anemia.
“Artificial intelligence is about to have a revolution in bringing cures to market dramatically faster,” Schweikert stated. “We’ve actually now had the first couple of AI drugs designed to make it through the FDA.”
Schweikert said policies can make it possible to bring new drugs to the market without costing $100 million.
“Do we think about things we could do in farm policy and nutrition policy in helping our brothers and sisters live better, healthier, more prosperous, [improve their] ability to join the labor force, maybe family formation, crushing income inequality,” he asked his fellow congress members.
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
Americans are feeling growing unease about the accumulating dysfunctions afflicting us which seem to elude governmental solutions. The combination of weak leadership and irresolute voters has led to diminished standing internationally, inflation, rising crime rates, energy shortages, the hollowing out of once-great cities, and persistent racial disparities.
Yet the greatest threats of all to our future are the national debt and illegal immigration, both of which are wildly out of control. These two dangers, if not soon contained, threaten to consign our beloved nation to second-tier status.
Yes, it could happen. Americans tend to believe that everything will be OK, because this is America where everything naturally gets better.
But there’s nothing inevitable about our good fortune. Yes, we have a fortuitous history, but the music could stop at any time if we habitually neglect the discipline necessary for successful self-government.
There’s even an ominous question of whether the debt and illegal immigration are even solvable at this point. Yes, we’ve carried high debt loads before, notably after World War II. Strong economic growth rescued us then. Innovation and improved productivity are again our only realistic hope of avoiding sharp economic decline.
But we’ve worked ourselves into a dangerous situation, where our annual debt service has reached $1 trillion. We are forced to borrow to make interest payments while our debt continues to grow – a death spiral normally leading to bankruptcy. Creditors will soon demand higher interest payments, and many may refuse to buy our debt altogether.
The effects of the massive migration of the last few years will also be difficult to reverse. Even if we ended illegal immigration today, the 20 million new residents among us aren’t going home, and deportation of this scope may be impossible.
At least two million are “gotaways” who intentionally avoided border check points, for reasons we can easily guess. This means not only will our lives become more dangerous, but social, educational, and criminal justice systems will all be undergoing stress tests just at a time when we are running out of money (see above).
Sure, Democrats have enthusiastically led the open borders craze. They ludicrously claim there is nothing they can do unless Republicans will legislate more, spend more, and agree to comprehensive immigration reform, a.k.a. universal amnesty.
But Republicans had their chance to close the border and didn’t. Instead of cutting back immigration, the Trump administration could have used executive authority to close the border entirely to unauthorized entry, as the law requires.
Americans’ traditional respect for the Rule of Law is a linchpin of our national success. We ignore it to our detriment. We now will pay an awful price for keeping the door cracked a little open when the law is clear.
Democrats have also led the charge for irresponsible spending for false reasons (COVID) or for pure political gain (student loan forgiveness). But Republicans have failed to be the adults in the room, quailing at the threatened “government shutdowns” during spending debates, sneakily supporting spending abuses like earmarks, and generally refusing to expend political capital on spending reductions.
When you’re in a hole, stop digging, right? The first orders of business are to close the border and balance the budget. Both require prodigious amounts of political will, and these are just the first steps.
There is some hope in the sudden transformation of the formerly sanctimonious sanctuary city jurisdictions. When faced with the realities of millions of unvetted, unskilled dependents demanding…well, everything, they are swiftly losing their enthusiasm.
For now, the self-described humanitarians are demanding more help in processing and caring for illegal immigrants, but it’s likely they will become more realistic before long. We’ll see. Voters clearly respond more constructively to crises which affect them personally, which our unmanageable debt will also soon begin to do.
Many historians believe we are seeing the inevitable decline of a still great civilization, a highly successful republic that by choice never became an empire yet achieved dominance and wealth. Like many before us, prosperity produced softness and self-indulgence in the citizenry and so we too may sink into the dustbin of history.
Somehow, we must not – we cannot – let that happen.
Dr. Thomas Patterson, former Chairman of the Goldwater Institute, is a retired emergency physician. He served as an Arizona State senator for 10 years in the 1990s, and as Majority Leader from 93-96. He is the author of Arizona’s original charter schools bill.
Rep. David Schweikert, R-Ariz., urged Congress to “take our nation’s fiscal health seriously” in response to the growing national debt.
Schweikert’s Daily Debt Monitor shows the federal government’s gross national debt increasing by $839 billion already this fiscal year, which began in October.
So far this fiscal year (3 months in), the total national debt has increased by $839 billion. That's ~$8.65 billion per day, and just over $100,000 per second.
I implore my brothers and sisters in Congress to take our nation's fiscal health seriously. pic.twitter.com/7XACzQ0mjM
“That’s ~$8.65 billion per day, and just over $100,000 per second,” Schweikert tweeted.
“I implore my brothers and sisters in Congress to take our nation’s fiscal health seriously,” the congressman continued.
The national debt has increased by more than $360 million per hour, $6 million per minute, and $100,00 per second this fiscal year.
The total national debt as of Jan. 4 was more than $34 trillion, compared to around $31 trillion on Jan. 4, 2023. This includes both intragovernmental and publicly held debt. Between 2023 and 2024, there was an increase in debt of more than $7 billion per day and $300 million per hour.
The national debt hit the $34 trillion record this month. The Congressional Budget Office’s January 2020 projections didn’t expect gross federal debt to surpass $34 trillion until fiscal year 2029.
The Congressional Budget Office expects the debt to only get worse in coming years. An estimate shows America’s entitlement spending, mandatory spending, and net interest payments on the debt will exceed the government’s total revenue by the early 2030s.
In June, Republican lawmakers and the White House agreed to temporarily lift the nation’s debt limit, making an agreement that lasts until January 2025.
The Congressional Budget Office estimated in its 30-year outlook last June that publicly held debt will be equal to a record 181% of American economic activity by 2053.
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
Social Security and Medicare are so popular they are commonly known as the “third rail” of politics. Any politician who touches them gets a nasty shock. The politically smart thing for decades has been to periodically increase benefits and not worry too much about adequately funding these supposedly self-sufficient programs
Congress designates SS/Medicare as non-discretionary spending, which allows even fiscal conservatives to earnestly explain that Congress is unable to touch them, not even to reduce the benefit increases they themselves bestowed in the past. Of course, this is ridiculous since Congress could legally eliminate the programs if it chose to do so (not recommended).
As the population has aged and birth rates have fallen, SS/Medicare have descended into serious financial distress. This year, the programs will spend $69 billion more than they take in. The programs’ trustees recently moved the date for expected insolvency up to 2031 for Medicare, 2034 for Social Security.
Yet there is little acknowledgment from the political class that a problem exists. To acknowledge it creates a mandate for making highly unpopular choices. Even Donald Trump, the would be “conservative” leader, has decreed that no part of making America great again will involve touching our major entitlements. The endless quest for re-election continues to dominate decision making in Washington.
Even beyond entitlements, America has a spending problem. The federal government spends about 25% of GDP but only takes in revenues of 19%. The rest is charged off to future generations. With interest rates returning to normal levels, federal debt service will soon exceed $1 trillion a year, roughly what we spend to defend our country.
Why do we continue to spend so recklessly in times of peace and prosperity? It’s partly our perverse politics, where spenders dare opponents to suggest fiscal reforms and then rip them for bringing it up.
It’s also a mindset. Not long ago, families were considered the primary caregivers for each other. It was contemptible to neglect your own.
Americans today believe they are entitled to have government assume what were formerly family duties. Politicians gain millions of grateful dependents and family structure suffers, but there’s no going back.
Federal decision-makers have adopted an all-purpose solution to the problems that plague us: throw dollars at it. Schools failing? Send money. Semiconductor industry struggling? More money. People still living in poverty? Appropriate even more money. Money papers over our problems but affords no actual solutions.
Nobody even talks about the monetary implications of our ongoing border crisis. Over seven million mostly unskilled illegal immigrants breached our borders. Immediately upon successfully registering their fraudulent asylum claims, they expect food, shelter, medical care, transportation, eventually education, and social services all without a thought of paying for them.
The direct and indirect costs are incalculable, but California already reports annual direct expenses of $21.76 billion while Texas pays $8.8 billion and Arizona $3.2 billion.
Yet Democrats contend only more money can solve the problem. Biden and border czar Kamala Harris claim Republicans are responsible for the border mess because they once blocked further spending increases, even though the money goes to accommodate more illegal immigration. It’s time to end this massive farce and lawfully control the border. Democrats will have to find some less costly way to recruit future voters.
Our response to the COVID epidemic was another giant boondoggle. There wasn’t much to do about the virus. Protect the vulnerable, treat the ill, develop a vaccine, and allow it to run its course.
Instead, we embraced an orgy of spending. Trillions went to infrastructure improvements, solar energy, daycare, schools, businesses, and even individuals, all inexplicably in the name of COVID. It didn’t affect the course of the disease, but our descendants will pay for this spree far into the future.
It gets worse. In 2025, the spending caps on Obamacare and other discretionary items are set to expire as are the low interest bonds the government issued when money was cheap. There will be tremendous pressure to spend yet more just to maintain the spending status quo.
Thomas Jefferson, 250 years ago, extolled the benefits of a “wise and frugal” government. We didn’t listen. We will soon wish we had.
Dr. Thomas Patterson, former Chairman of the Goldwater Institute, is a retired emergency physician. He served as an Arizona State senator for 10 years in the 1990s, and as Majority Leader from 93-96. He is the author of Arizona’s original charter schools bill.
On September 19, I testified before a House subcommittee on the impacts of Bidenomics – yet it was clear that half the committee members weren’t even listening. That’s disturbing because our lawmakers have played a huge role in making the typical American family about $7,000 poorer in just two and a half years.
Instead of acknowledging the data I presented, the Democrats on the subcommittee only regurgitated their talking points and resorted to espousing falsehoods about the state of the economy. Even if half our leaders won’t listen to the facts, hopefully the American people will, so here’s the truth about Bidenomics.
Under President Joe Biden, the government has spent, borrowed, and created trillions of dollars, and that caused the highest inflation in four decades. This inflation is a real tax on the American people because it transfers wealth from the people to the government. And the size of that transfer has been staggering.
The average American worker today loses more of his hourly earnings through the hidden tax of inflation than in federal income taxes. That means inflation under Mr. Biden has effectively doubled the average American’s federal income tax liability. Nominal pay keeps going up, but real (inflation-adjusted) pay has gone down.
The typical American family with two parents working and with average weekly earnings has seen their weekly pay increase $230 under Biden, but those larger paychecks buy about $100 less. The result is an annual decrease in purchasing power of about $5,100.
Similarly, net household wealth is at a record high today, but only before adjusting for inflation. In real terms, net household wealth is roughly flat since the end of 2020. That means nearly all the trillions of dollars in additional net household wealth have been confiscated by the government under this president through the hidden tax of inflation.
That’s how the government has been financing its massive deficits for the last three years.
To combat the inflation that it helped cause, the Federal Reserve has increased interest rates which have compounded the pain for Americans. Borrowing costs have risen dramatically and are now about $1,800 higher annually for the typical American family. Coupled with their loss in purchasing power, this leaves a family about $7,000 poorer than when Mr. Biden took office.
Yet many people are even worse off than that. If you’re trying to buy a home today, the monthly mortgage payment on a median price home has more than doubled under Mr. Biden. Homeownership affordability is at one of its lowest levels on record, and less than half of American households can qualify for a mortgage. And many who qualify still can’t afford the payments.
The impact of Bidenomics on federal finances has been just as bad, with interest on the federal debt rising at the fastest pace on record. In less than a decade, interest payments will crowd out more than half of existing government spending.
While the Democrats on the subcommittee refused to listen to any facts I presented, nothing I said was about politics, but policy. President Bill Clinton, a Democrat, signed welfare reform and multiple balanced budgets. And the 12 years of low inflation that preceded Mr. Biden were overseen by both a Republican and a Democrat.
The laws of supply and demand are purely apolitical, with both Democrats and Republicans being subjected to them. The sooner today’s Democrats—and some Republicans—realize this, the sooner they can acknowledge the factual outcomes of Bidenomics and hopefully change course.
But if the conduct of the Democrats on the subcommittee before which I testified is any indication, we shouldn’t hold our breath.
E.J. Antoni is a contributor to The Daily Caller News Foundation, a public finance economist at The Heritage Foundation, and a senior fellow at Committee to Unleash Prosperity.
