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[Editor’s note: This story originally was published by Real Clear Policy.]
The record high inflation that is plaguing Americans is being fueled by out-of-control federal spending. The federal government has spent over $6 trillion on COVID-19 related pandemic stimulus measures. The most recent, American Rescue Plan Act (ARPA) was not even needed as most states are experiencing large surpluses. The national debt is over $30 trillion and rising, which translates to an estimated $97,500 per citizen. This does not even include the unfunded liabilities of entitlement programs such as Medicare, Medicaid, and Social Security. The United States is confronted with a serious debt crisis and if Congress does not rein in spending it will create dire economic and national security consequences. Senator Mike Braun (R-Indiana) is attempting to restore fiscal sanity. Sen. Braun is proposing a budget plan that will begin the process of addressing out-of-control spending.
It is unfortunate that American people have become numb to the national debt. A reason for this is that policymakers refuse to address out-of-control spending and the national debt is similar to the “boy crying wolf” story. People have become used to the national debt increasing without any major consequences. However, that is changing with the record inflation.
Government spending is not the only cause of high inflation. The poor monetary policies of the Federal Reserve have also helped create our current economic situation. The crisis in supply-chains is another factor. Nevertheless, poor fiscal policies originating from Congress are the root cause. The national debt already consumes 123 percent of Gross Domestic Product (GDP), and Uncle Sam is paying billions in interest payments, which are estimated to increase to $1.
