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.
As the standoff between the U.S. and its allies continues with Russia over its possible designs to invade Ukraine, President Biden held a video conference call with European leadership and had 8,500 American troops put on high alert. Jamil Jaffer, a former associate White House counsel for the Bush Administration, joined Cheddar to discuss his views on the escalating crisis in Eastern Europe.
As controversy dogs the run-up to the 2022 Beijing Winter Olympics, China is hiring TikTokers and other social media influencers to promote the nation's history, culture, diplomatic efforts, and current trends.
The Supreme Court has rejected another request to block Texas' strict abortion law. This marks the third time the high court has declined to intervene in challenges to the law that bans abortions after six weeks, well before many women even know they're pregnant. Aziza Ahmed, professor of law at the University of California, Irvine, joined Cheddar News to discuss the impact of the law so far on women seeking abortion services in Texas.
Mayors in cities like Miami and New York City are considering introducing cryptocurrencies as a way to reduce economic inequality. Miami Mayor Francis X. Suarez has even pushed for distributing Bitcoin dividends to the city's inhabitants.
The U.S. will be implementing a vaccine mandate for all people entering through its land borders, removing exemptions for "essential" travelers such as truckers, students, and business people. While the Canadian Trucking Alliance argues that the new, stricter rule might exacerbate ongoing auto supply chain issues, some health experts see the potential for helping curb the ongoing pandemic. Anthony Santella, a professor of health administration at the University of New Haven, joined Cheddar to give his take on the updated border crossing restriction. "We can't just focus on one type of travel. We need to ensure that it's clear and consistent across all types of travel," Santella said.
Will Rhind, CEO of GraniteShares, joins Cheddar News' Closing Bell, where he says he believes the Fed's plans of increasing rates is taking its toll on some of the more speculative stocks and the technology market.
Mona Zhang, states cannabis policy reporter at POLITICO Pro joins Cheddar News to discuss major factors that caused Canada's retail marijuana sales to drop last year.
The January 6 committee has asked Ivanka Trump to give voluntary testimony, saying there's evidence she was in "direct contact" with her father on the day of the capitol insurrection. I's unclear whether she will comply with the invitation, but it marks the first time the House committee has sought testimony from a member of the former president's family. Bradley Moss, national security attorney, joined Cheddar News to discuss what the committee hopes to learn from Ivanka and what the Supreme Court's decision on Trump's Jan. 6 materials means for the investigation.
