As the nation gears up for Election Day, there is looming concern over the growing federal deficit, which currently sits just over $3 trillion, mainly as a result of COVID-19 sweeping the country. But as it stands, whichever presidential candidate is declared winner, big government spending is likely to continue as the economy looks to climb its way out of the hole.
This year alone, the federal government has tabbed up nearly $4.9 trillion in spending and is on track to hit $6.6 trillion.
Trump vs. Biden Spending Plans
For President Donald Trump, a win in the election would likely mean a continuation of record spending under his administration. In the first two years of his term, Trump widened the federal deficit to 4.3 percent, largely due, in part, to tax cuts. Now, with coronavirus cases spiking nationwide and concerns over the second wave crashing on the U.S., the president has publicly pushed for an additional round of stimulus that would pump $1.8 trillion into the economy which would include another round of one-time payments of $1,200.
Biden, meanwhile, has outlined a plan that calls for $5 trillion in government spending over the next 10 years, making it the most expensive budget plan in recent history. In fact, the plan is more than twice the size of Hillary Clinton’s 2016 proposal.
While the deficit would balloon, the plan would provide local and state governments with more than $700 billion to boost job growth. The former VP also looks to pour funds into housing, clean energy, education, and tech.
What Does Big Government Spending Mean For You?
While the nation’s deficit reaches landmark levels, Americans might not feel the impact just yet. However, if the government is unable to pay its debt, the value of the American dollar could drop significantly, essentially triggering inflation. Everyday shopping necessities like gas and groceries could see a jump in prices.
If a vaccine to combat COVID-19 becomes widely-distributed, big government spending would likely reverse from its current rate since much of it is linked to aiding struggling industries amid the pandemic.
The House has passed some of the most aggressive gun-control measures in years, including raising the minimum age to buy semi-automatic rifles from 18 to 21 and banning high-capacity magazines. Daniel Webster, Co-Director of the Center for Gun Violence Solutions, explains why this legislation has little chance to pass in the Senate, and what else can be done to curb gun violence in this country.
We are already starting to feel the effects of summer. Heat waves in Texas and California are already sending temperatures soaring. That could spell trouble for the nation's power supply. there are new concerns about outages in many areas of the country. Cheddar's Shannon Lanier explains the two main causes of blackouts, and what states are doing to keep the lights on and the air conditioning running.
If you have been on the road this past year, you've probably seen more accidents on the road than you ever have. You're not wrong. Traffic fatalities are not only increasing they are hitting historic highs. Almost 43,000 people died in motor vehicle accidents in 2021. Cheddar's Shannon Lanier investigates - and finds out why.
U.S. stocks close Tuesday at session highs after a subpar start to the trading day. Tim Chubb, Chief Investment Officer at the wealth advisory firm, Girard, joins Cheddar News' Closing Bell to discuss. 'We're starting to see the moderation of three core things -- we've seen the moderation of prices, we've seen the moderation of wage growth we've seen in the labor market, and we've also seen a moderation of job openings,' he says.
Catching you up on the stories you need to know this morning, mass shooting victims testify on Capitol Hill, the White House outlines its plan to vaccinate kids younger than five years old, and we break down how to protect yourself from monkeypox.
A lot has changed since the pandemic began back in march 2020. COVID-19 caused a huge disruption in the U.S. labor force that is just beginning to normalize. As of last month, about 96% of jobs lost in the pandemic have returned. Still, where people work now looks very different from two years ago. Cheddar's Shannon Lanier looks at where the jobs are now and where they aren't.
Getting you caught up on the stories you need to know this morning: Matthew McConaughey lends his voice to the gun control fight in congress, at least 30 people were injured in Germany after a car plows into a crowd, and a new weight loss drug shows promising results.
Michelle Bond, CEO of the Association for Digital Asset Markets, joins Closing Bell, where she breaks down the Responsible Financial Innovation Act, which would not only establish a regulatory structure for digital assets, but hand over crypto oversight to the CFTC instead of the SEC.
Sarah Warbelow, legal director for Human Rights Campaign, joins Cheddar News to discuss why advocates want to overturn the FDA's rule restricting gay and bisexual men from donating blood.
