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oe Biden already has repeatedly claimed that he’s reduced the deficit by over a trillion dollars.
The facts are that the federal government’s spending is about the same now as it usually is, maybe more – it’s only lower than last year because of the huge cash handouts by the government because of COVID at that time.
Now economists are saying he’s trying to use the same manipulation again.
This time, he’s promising to account for the cost of his student loan program – his estimate is at about $380 billion but other estimates are much higher – in the 2022 budget.
That will make the 2023 budget appear to be a decline.
According to a Washington Free Beacon report, economists are calling his strategy a reckless budgetary gimmick and a “great error.”
The student loan program – Biden calls it forgiveness but no debt is being forgiven, just transferred from those who borrowed and spent the money to taxpayers – is being added to the “2022 fiscal year budget without any payment mechanism,” the report said.
“My cynical answer is they did it this way so next year they can say the deficit is lower,” economist Marc Goldwein of the Committee for a Responsible Federal Budget told the Free Beacon. “If instead they put it in the 2023 fiscal year, it would look more obvious that they’re increasing the deficit.”
Biden wants to transfer up to $20,000 of debt from students who got Pell grants to taxpayers, and up to $10,000 from other students to taxpayers.
The program will take years, “but the entire cost will be born in a single fiscal year, a budgetary maneuver likely intended to boost the Biden administration’s misleading talking point that it’s overseeing falling deficits,” the report explained.