Lubbock Times

Yesterday, the Congressional Budget Office (CBO) released its monthly budget review for June 2024. According to the report, overall spending, after adjusting for timing shifts, has increased by 7 percent to $320 billion, while revenues have risen by 10 percent to $342 billion compared to the same period last year. Interest spending has surged by 40 percent to $201 billion.

The report highlights several key figures and implications of the current fiscal situation. The national debt has reached an unprecedented $34.85 trillion, surpassing the size of the U.S. economy. This equates to a debt burden of over $104,000 per person in America. The country is borrowing more than $80,000 every second just to cover expenses, with a projected budget deficit of $1.9 trillion.

Economic analysts express concern over these developments. "Let’s be clear about the danger America is facing," one analyst noted. They emphasized that continued high levels of spending and borrowing could lead to severe consequences for families and businesses alike.

Families are already feeling the impact through record-high inflation and reduced access to capital. "Today, the average family of four is paying over $17,000 per year or $1,400 more per month for goods and services compared to when President Biden took office," said another expert.

Local economies are also suffering as inflation hampers job creation and business operations. "As crushing inflation takes a stranglehold on local businesses," they added, "it becomes harder for them to create meaningful jobs for their neighbors."

National security concerns were also raised in light of increasing sovereign debt and weakened economic standing on the global stage. A weaker dollar undermines trading capabilities and excessive spending diverts funds from defense needs. Analysts warn that this could embolden adversaries such as China and Russia.

The House Budget Committee advocates for significant changes in fiscal policy: "We must reverse the curse by stopping reckless spending, restoring economic freedom, and unleashing prosperity in America once again."

Further information can be found in various reports from the House Budget Committee on CBO's updated budget projections for fiscal years 2024-2034 and comparisons between CBO’s February 2024 baseline report and its June 2024 update.

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