Treasury just dropped a financial bomb, but Bidenomics means the worst is yet to come

The Treasury fiddles as the nation’s finances burn around it

With all the chaos and heartbreaking loss of life around the world today, few noticed the Treasury Department drop a financial bomb: The deficit for fiscal year 2023 was $1.7 trillion, growing 23 percent in a single year as the Treasury used $879 billion just to service the federal debt. But “Bidenomics” means the worst is yet to come, and multi-trillion-dollar deficits are the new normal.

The impetus for these massive deficits is federal government spending, which tipped the scales at $6.1 trillion last year. Government receipts, meanwhile, were $4.4 trillion, woefully short of the $5 trillion previously forecasted. A slowing economy and counterproductive tax increases were key drivers behind the $457 billion drop in receipts from the prior fiscal year.

Yet, even these reduced revenues would have resulted in a balanced budget if President Biden had simply allowed spending to return to its pre-pandemic level. Instead, Treasury outlays are up 38 percent today compared to pre-pandemic times.

That’s why it’s so deceptive for the Treasury to have recently announced that the deficit is $1 trillion lower than when Biden took office. Elevated spending levels in 2020 should have been one-time emergency measures, but the Biden administration institutionalized $6-trillion budgets by simply replacing pandemic-era outlays with the Biden agenda.

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