A Manhattan Institute budget report found alarming details about former Vice President and current Democratic presidential candidate Joe Biden’s spending plans. In summation, “the policies he’s proposing are going to endanger the economy over the longer term.”
Specifically, Biden’s proposals would increase federal spending by an unsustainable $11 trillion over the next 10 years. The result could be a debt crisis, experts say. According to the Institute’s report, the tax revenue under Biden would be projected to increase by $3.6 trillion over ten years, which means he would have a deficit increase of $7.4 trillion by 2030.
Brian Riedl, a senior fellow at the institute and author of the report told The Daily Caller News Foundation, “the policies he’s proposing are going to endanger the economy over the long term.” With “$4 trillion in new taxes, which is the biggest tax increase since the end of World War II, as well as $11 trillion in new spending, certainly more regulation, a higher minimum wage. All of that is going to weaken the economy.”
Biden’s largest single item spending proposal is the coronavirus $2.4 trillion Health and Economic Recovery Omnibus Emergency Solutions Act which Nancy Pelosi has already endorsed. Other costly plans include a $2 trillion climate and infrastructure initiative and $1.5 trillion health care expansion.
“It’s absolutely unsustainable,” Riedl told the DCNF. “The danger is that eventually, the interest costs will bury us. When you borrow that much money, all it takes is a small increase in interest rates to completely bury the federal budget.” Riedl also noted the Congressional Budget Office has projected that the U.S. will borrow $104 trillion over the next 30 years. That estimation uses a projection of interest rates, which could increase.