$1.9 trillion?

We already spent north of $6T last year with a record $3.13T deficit. Now there might be $1.9T spent this year, in addition to the government's expenses like Medicare, SS, etc.? Is there anyone knowledgable on this topic who can explain what this will cause for our country in the coming years? Will there be mass inflation and/or higher taxes or will things be mostly the same?

Comments (12)

 
  • VP in IB - Ind
Jan 14, 2021 - 9:47pm

2080 hours at $15 = $31.2k per year, and even that is barely a living wage. If you can't afford to pay an employee $15 an hour, maybe you shouldn't be operating a business. 

 
Jan 14, 2021 - 9:47pm

 

2080 hours at $15 = $31.2k per year, and even that is barely a living wage. If you can't afford to pay an employee $15 an hour, maybe you shouldn't be operating a business. 

Enterpreneur: ''I have xyz business idea but can't pay that much early on because we need to sell first''

Unemployed people: ''worth a shot''

The libs: ''not on my watch''

LMFAO. If the world had followed your logic, humanity would have never progressed.

Can be summoned to make fun of liberals at will. 

  • 3
 
Jan 14, 2021 - 9:47pm

Depends on the region. In NYC 31K is barely livable. But in more rural village areas the COL reduces significantly. Additionally , there should be jobs for teenagers to get experience that don't have to be a livable wage and gives them something to do and a purpose in life at that age . For many that is the difference between joining a gang/ doing drugs. Also with automation / outsourcing businesses will continue to off shore jobs or automate entry level positions to keep costs down. 

Array
 
Most Helpful
Jan 14, 2021 - 9:47pm

The last 4-5 years our spending has been totally and utterly out of control, and in 2020 it was simply mind-numbing. And it continues into 2021. 

I had an epiphany recently. My soul has felt crushed the last year or so thinking of all the money flushed down the toilet in Covid relief spending. I was thinking that we've mortgaged our nation's future--we've set back our infrastructure by at least 1 generation to cover a single year of spending. Generations *centuries* into the future will be paying the debts for our response to Covid the last year. And then it struck me--it's irrelevant now. Centuries from now students will learn that the early 21st century was the beginning of the end for the American empire. If you fast-forward to 2100 I seriously doubt there is the United States as we know it. I think our national union is coming to an end and we are going to be swamped by Asia, particularly China. The only thing that will keep China from fully dominating the planet is Mandarin Chinese, which is too difficult to learn for non-native speakers. Maybe English will continue as the lingua franca. 

The Roman Empire collapsed, in part, because it could no longer finance a robust military and it got overrun by the Barbarians and eventually dissolved. The U.S. is going to collapse because it won't be able to finance its vast spoils system and elected leaders will inevitably go the Venezuelan route--print money until the whole system spirals out of control, and then print some more. The American public is way too selfish to put the needs of the nation ahead of its own wants.

2020 showed me that the American public is full of greedy cowards who endorsed stripping themselves of their own civil rights in the name of a LITTLE safety. There is no nation remaining worthy of defending. 

 

Array

  • 5
 
Jan 14, 2021 - 9:47pm

We need to set term limits on Congress people similar to president . Those career politicians have 0 skin in the game and will get their paycheck no matter what happens to the country.

Array
 
  • Associate 2 in IB-M&A
Jan 14, 2021 - 9:47pm

Unfortunately, only Congress can set those term limits and the last thing they are going to do is handcuff themselves. There are a few congressional leaders advocating for this but I don't have high hopes. 

 
Jan 14, 2021 - 9:47pm

Compared to the Nostradamus above me, I don't think US spending matters too much. The US is still the reserve currency. Most of the worlds pension funds and banks are gobbling up every treasury bond the US issues, even if bond yields are dismal, due to ageing population and the resultant flight to safety. As long as the US finds willing financiers for its spending it outsources it's own resource constraints to the countries willing to lend to the US (which will not see very strong returns on their investments due to continual accommodative monetary policy). What will happen is that interest rates will have to remain very low indefinitely, because any rise in interest payments would lead to substantial debt servicing payments. But as long as interest rates remain approximately zero (and remember that the FED controls these interest rates) the situation is stable. So the only real threat is that the US loses its reserve currency status and there is a flight to safety away from the US.

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