By: Joseph Jankowski | PlanetFreeWill.com
Here at Planet Free Will, we often report on the outrageous deficit spending by the federal government in the perspective that every dollar that is taken from the individual and fed to the Washington machine is a dollar that could have gone to an individual’s productive behavior in the real economy where resources are much more accurately allocated. Currently, the spending by the federal government in the United States is killing the real economy as its bloated nature calls for an extensive amount of taxation that was unimaginable at the founding of this “free” nation. This spending is reaching new levels of absurdity.
The spending numbers by the federal government for the month of June are jaw dropping (as they are every month but this time the bar was raised higher). The real monthly federal spending topped $400 billion for the first time in June, when the Treasury spent a record $428,894,000,000, according to the Monthly Treasury Statement released this week.
The prior record for monthly spending was a whopping $392,816,000,000 in March of this year.
If it isn’t bad enough that the American people have to deal with this enormous government taxing their time and energy at historically high levels in order to spend such a seemingly farcical amount of money, it turns out that the Federal Government isn’t even bringing in enough tax dollars to cover it all!
As the Treasury was spending the record $428,894,000,000 in June it was taking in approximately $338,660,000,000 in taxes— meaning it ran a deficit for the month of $90,233,000,000.
As mentioned at the start of this piece, every dollar that is taken from the American people and fed into the special interest run Washington machine is a dollar that could have been used to manage a house hold or for capital investment. But instead, these dollars are pumped into a massive spy state and military industrial complex that is off destabilizing nations across the middle east.
The $338,660,000,000 that went into the bureaucratic coffers is $338,660,000,000 that was not spent in the real economy by real economic actors (the American people) for productive and necessary means.
So far in fiscal year 2017, the Treasury has brought in $2,507,820,000,000 in taxes and spent $3,030,903,000,000—running a deficit of $523,082,000,000.
In the coming weeks, we will start to see headlines pointing out that the federal government has final, and unsurprisingly, topped the $20 trillion debt mark while U.S. lawmakers grapple with the exhaustion of extraordinary measures that were put in place earlier this year to keep the government funded.
According to the CBO, the legislative body will have no choice but to raise the debt ceiling in, given that the U.S. Treasury is set to run out of liquidity by mid-October if no decision is reached. The Trump administration has asked Congress to come to an agreement to raise the limit before the annual congressional August break, a break which has been extended by Senate Majority Leader Mitch McConnell in order to get important legislative tasks completed.
It is often said that the failure to raise the debt ceiling would be a terrible “financial crisis” while the outrageous amount of spending on behalf of Washington is seen as normal, like the wind blowing in spring. But the truth is that the crisis is the runaway deficit spending that puts Washington’s back against the wall every now and then to face the reality that it must further the country, and the average person, into more debt to stay afloat.
The failure to raise the debt ceiling would cause a default, which is the act of coming to the final admittance that the bills can not be paid and that living beyond one’s means can not happen exponentially for an indefinite amount of time.
According to an analysis by Terence P. Jeffrey of CNSnews, the record spending this June was largely driven by increases in spending by the Departments of Education, Housing and Urban Development and Health and Human Services.
Each one of those agencies mentioned above runs huge deficits each year.
In June 2016, the Department of Education spent $12,096,000,000 and by that point in fiscal 2016, it had spent $59,457,000,000. This June, the Department of Education spent $45,691,000,000 and so far this fiscal year, it has spent $90,206,000,000.
This year’s June Department of Education spending is $33,595,000,000 more than last year’s.
In June 2016, the Department of Housing and Urban Development spent $3,294,000,000 and up to that point in fiscal 2016, it had spent $20,169,000,000. This June, Housing and Urban Development spent $24,443,000,000, and so far this fiscal year, it has spent $49,498,000,000.
This year’s June Housing and Urban Development spending is $21,149,000,000 more than last year’s.
In June 2016, Health and Human Services spent $87,030,000,000 and up to that point in fiscal 2016, it has spent $792,492,000,000. This June, HHS spent $113,925,000,000 and so far this fiscal year it has spent $823,914,000,000.
In its own analysis of federal spending for June, the Congressional Budget Office explained the massive increases in Education and HUD spending during the month.
“Outlays for the Departments of Education and Housing and Urban Development increased by $33 billion and $21 billion respectively, because of upward revisions to the estimated net subsidy costs of loans and loan guarantees issued in prior years,” said CBO.
The truth of the matter is that the U.S. is currently in a massive financial crisis. As long as the American people allow the Congress and bureaucrats to recklessly handle the nation’s finances, the future of this country’s stability will remain uncertain.
Just imagine what could be done if those trillions of dollars (even half of that amount) were left in the economy, in peoples pockets. Imagine all the good that could be done.
Joseph Jankowski is a contributor for PlanetFreeWill.com. His works have been published by recognizable alternative news sites like GlobalResearch.ca, ActivistPost.com, InfoWars.com and ZeroHedge.com.