America’s Budgetary & Economic Outlook Deteriorating Under One-party Democrat rule
WASHINGTON, D.C. – Today, during a hearing of the House Budget Committee with Congressional Budget Office (CBO) Director Phillip Swagel, House Budget Committee Republican Leader Jason Smith (MO-08) highlighted how CBO’s latest Budget and Economic Outlook demonstrates the appalling extent to which America’s budgetary and economic outlook has deteriorated under just one year of President Biden and Democrat one-party rule in Washington. During his opening statement, Smith laid out the data behind his conclusion that “President Biden has worsened the balance sheet of the federal government, the economic outlook for our country and the fiscal health of American families.” For example:
- When President Biden entered office, CBO predicted the government would spend $61 trillion over the next 10 years. Now, they say it will be $72 trillion.
- When Biden entered office, CBO predicted the government would run up just over $12 trillion in deficits over the next 10 years. Now, they say it will be close to $16 trillion.
- When Biden entered office, CBO predicted the government would spend $4.6 trillion on interest payments over the next 10 years. Now, they say it will be over $8 trillion.
- When Biden entered office, CBO predicted the average interest rate to be 2.5 percent over the next 10 years. Now they say it will be 3.5 percent. Their prediction for this year has nearly doubled from 1.3 percent to 2.4 percent.
House Budget Committee Republican Leader Smith ended his opening remarks by noting that the one silver lining in CBO’s analysis is that under the Republican-passed Tax Cuts and Jobs Act, as families and job creators have experience tax relief, federal revenues have grown substantially and are now “far exceeding what CBO projected the federal government would collect.” Click here or on the image below to view Smith’s comments on revenues.Click here or on the image below to watch House Budget Committee Republican Leader Smith’s full opening remarks.
During the hearing, House Budget Committee Republican Leader Smith questioned CBO Director Swagel about the agency’s forecast for future spending, debt, inflation, and interest rates. Given that after just one year of deficit spending under President Biden and Washington Democrats, CBO is now predicting an additional $5 trillion in debt over the next 10 years and the fact that the $2 trillion American Rescue Plan sparked the worst inflation crisis in 40 years, Smith asked CBO Director Swagel to explain how inflation affects rising debt and the cost of servicing that debt through higher interest payments. Click here or on the image below to watch the exchange.
In an exchange with Smith, CBO Director Swagel also confirmed that inflation was up “very sharply” last year – debunking President Biden’s new favorite talking point that Russian President Putin’s invasion of Ukraine is to blame for the inflation crisis. In fact, inflation was already up 7.5 percent before Putin’s war on Ukraine began. Click here or on the image below to watch the exchange. Watch the full House Budget Committee hearing on CBO’s Budget and Economic Outlook: 2022 to 2032.