Joe Biden

Biden's Astronomical Budget Proposal Even Has Some Democrats Worried

The spending plan demonstrates an unwillingness to govern and a preference for pandering to special interests.

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Some emergencies require an increase in government spending, but that comes with an understanding that the higher levels of spending are unusual and will not be sustained. Unfortunately, this understanding seems to be lost on President Joe Biden's administration. Exhibit A is his proposed $6 trillion budget for Fiscal Year 2022 and the accompanying huge budget deficits on the books for the next decade.

This is bad news for everybody except politicians and their cronies. It signals once again that contrary to the words spoken by the president during his inaugural address, unity is not in the cards for us Americans. In fact, this budget, which is unlikely to pass in its current form, demonstrates an unwillingness to govern and a preference for pandering to special interests.

Even if this budget is likely to go nowhere, it's an aspirational document about the president's goals. And the goals expressed in this budget are extremely progressive, with the government providing for people from cradle to grave, independently of their needs. These goals are also extremely irresponsible. For starters, Biden proposes spending $7.2 trillion in 2021 and over $6 trillion in 2022. These numbers include part of the $4 trillion in spending on Biden's proposed plans for infrastructure and "families."

If adopted, spending will reach $8.2 trillion annually by 2031 while the annual budget deficit will settle in at roughly $1.3 trillion annually for the next decade. These numbers are staggering. Consider that in 2020, which was also the peak of the pandemic, the Trump administration and Congress spent some $6.5 trillion, up from $4.4 trillion pre-COVID crisis.

To pay for all this spending, Biden proposes to borrow $3.7 trillion in FY 2021. Not surprisingly, the national debt under this plan is projected to increase from $24 trillion this year to $39 trillion by 2031. That's an increase of debt held by the public from 100 percent of the gross domestic product in 2020 to 117 percent by 2031. As a reminder, at the height of World War II, public debt as a share of GDP was 106 percent.

There isn't a way to look at this budget proposal and not be stunned by its immense scale. For instance, spending as a share of GDP in 2019 was 21 percent. It increased during the pandemic to 31.2 percent as spending increased and GDP collapsed. But even with economists predicting strong economic growth this year, Biden is jacking up government spending's share of GDP to 32.7 percent. Uncle Sam's spending will still represent over a quarter of GDP in FY 2022, according to this budget.

This budget is only the beginning of Biden's big government aspirations. According to Brian Riedl of the Manhattan Institute, "these staggering figures do not even represent the entire Biden agenda….During last fall's campaign, Biden also proposed trillions in new spending for health care, Social Security, Supplemental Security Income, climate change, college aid, and other priorities. The White House has signaled that these new spending initiatives are still in the pipeline."

This proposed budget has numerous economists, including prominent Democrats like Larry Summers, warning of the risk of inflation due to overspending at a time when the recession recedes, and the economy is fast moving toward full employment. This is not the first time that the level of spending from the Biden administration has triggered some anxiety from the left. In fact, when the last COVID-19 relief bill passed without any Republican votes, former Obama economist Jason Furman tweeted about his hope that the bill's spending multipliers (the economic bang resulting from $1 in government spending) would be "much lower" than the traditionally assumed 1.5 multiplier. "Otherwise this would bring us past what the economy can produce this year," he said.

It's not often that Democrats hope for small returns on government spending and implore the president to scale back the budget. Yet, here we are.

That said, this budget wouldn't be truly progressive if it didn't come with $3 trillion in new taxes over the next decade—the largest tax increase since World War II. It won't be nearly enough to pay for all the new spending, though it would position Biden to scratch the Democrats' class-warfare itch.

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95 responses to “Biden's Astronomical Budget Proposal Even Has Some Democrats Worried

  1. This may not be what you want, Ms. de Rugy, but it is exactly what the magazine/website you are contributing too wanted very badly and with great urgency. I’d like to think it is for accelerationist reasons but there’s no history here to indicate that is even the remotest of possibilities.

    1. I turned 50 a couple of months ago and hope that I will live long enough to see the end of this new big government era but I am not optimistic

      1. I just turned 65, and I’m pretty sure I will not see it absent a major catastrophe.

        1. I am even older than you by several years and I expect to see a disaster within my lifetime. With inflation pegged at near 4.5% in April up considerably from March I expect to see inflation even greater that it was during the Carter years. And this is before that proposed Biden $6 Trillion kicks in. So yes I expect to see a large disaster unless the democrats lose congress in 2022 and the presidency in 2024. In addition if the democrats continue to hold congress I see the US military being devastated right at the time when China will be expanding its military and world dominance. If China becomes dominant the US can kiss its A*SS goodbye because it will be no more of a power but will be a puppet of China.

          1. Ironically, with the figures stated, anticipate that Democrats will run in 2022 with claims of reducing the deficit by historical levels, dropping from 7.2 to 6 trillion dollars. Kinda like when the retailer discounts the watch from suggested retail value of $599 down to $199, which is still $150 more than it’s worth.

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          2. “I expect to see a large disaster unless the democrats lose congress in 2022 and the presidency in 2024”

            And where are these mythical Republicans who are going to practice fiscal responsibility? This disaster is thoroughly bipartisan.

            1. Lol look at the closet lefty who can’t tell a car accident from an airplane crash.

              1. And is full of shit.

            2. Don’t confuse spending like a drunken sailor with spending like a ship full of drunken sailors with stolen credit cards.

      2. I hope we don’t see the end of it, because it will end badly.

      3. I hope to see the progressive movement destroyed. The sooner the better. No matter what it takes. Given how obsessed and vicious the democrats have become it will likely take a full civi war and hundreds of thousands of dead progtards.

        Sadly a lot of decent Americans will suffer too.

        1. “Sadly a lot of decent Americans will suffer too.”
          True, but a lot of those folks thought voting their afternoon TV fan club faves was just ducky, right, fucking lefty shit Sullum?

  2. “It’s not often that Democrats hope for small returns on government spending and implore the president to scale back the budget.”

    What Democrats? One guy from the Obama admin who thought the multiplier (bullshit) should be lower?

    Yeah, sorry but koch reason liberaltarians bought into the grift that Trump was bad and then drank that Flavor Aid down hard.

    1. That was my thought too. 1 dude made a cryptic statement about the multiplier, and it’s interpreted as “some Democrats.”

      1. Sort of like when one Rep out of 435 casts an irrelevant and meaningless vote against his party, suddenly this is a “bipartisan effort”.

  3. No mean tweets, though, right?

    1. Same printing presses running on overtime.

      1. Same with gas.

  4. F**k the libertarians and f**k the republicans who fought to get this clown into power. Don’t count on the people who’ve been kicked in the teeth repeatedly to save you from your idiocy in 2022.

    1. But no mean tweets!!

    2. If we reduced the number of progressives to a manageable level this could all be fixed.

  5. 6 or 7 trillion dollars is going to be the price of a milk jug next year, at the current pace of inflation.

  6. What one trillion dollars look like.

    http://www.pagetutor.com/trillion/index.html

  7. Rampant inflation leading to hyper inflation with the possibility of total economic collapse. And only some Democrats are worried?
    Just shows how insane these people are today. It will take decades to undo Biden’s damage to this country.

    1. Undo? Who will undo it? They will stay in power by bribing the rubes with checks.

      1. “Once they find that they can vote themselves money…”

      2. You seem to not know the words economic collapse and revolution. Kings and Emperors of old with much more power than today’s politicians either fled their country or suffered the consequences of their angry citizens. Not to say what replaces them will be any better, it seldom is, but those that screwed it up tend to fair rather badly.
        i.e. French King Louis XVI and Emperor Napoleon
        Weimar Germany Kaiser Wilhelm II and Hitler and the Nazi
        Russia Tsar Nicholas and Lenin and the Bolsheviks.
        You get the idea.

  8. “But the rich and the corporations will pay for it all.”

    Some people are going to be surprised to find out that they’re “the rich”.

    1. They’ll never find out though. They are hiding all of these taxes in plain sight but in amounts so small or impacting so few people directly that it seems like they have nothing to do with it. They’ve learned that messing with the income tax rates is a losing policy which is why the limit for his no new tax pledge is so high. Indirect taxation is their plan and it’s working perfectly.

      Prices will go up because producers are being taxed (see the lumber tariff article) on production and Biden will blame the greedy corporations and he’ll convince everyone that if they pay higher corporate taxes we’ll all get something out of their money at least. They’ll tax corporations more aggressively and consumer prices will go up to cover those taxes as well. It’s a virtuous cycle for the left.

  9. Articles like this is why “Biden Voters Posting Their Ls” exists.

    https://mobile.twitter.com/BidenLs/status/1384708147424731136

    All of these things Biden is doing was on his campaign website. It was all ignored by people too mired in believing Trump was a unique existential threat. It was your lack of a level of curiosity that only required you to read Bidens campaign literature. You failed to even do that.

  10. Imagine if Reason had such consternation when Rs added 2 trillion (10% of the total) to the debt and raised the budget deficit from 450 billion to over a trillion a year. All for tax cuts for the wealthy like Koch who owns this rag. Imagine..

    1. Because if we know one thing about reason it is they never attacked Trump or the right.

      Biden is proposing 12 trillion spent just this year dummy.

      1. “…dummy.”

        Please don’t insult dummies.
        They have zero intelligence, while this pile of lefty shit checks in with negative numbers.

    2. Except the tax cuts didn’t cut government revenues, and the 2 trillion was supposed to be a bailout to recover from the lockdowns, not a new baseline.

    3. Congratulations, you have surpassed shrike as the dumbest motherfucker to post here.

    4. Yes, blame republicans for doing one tenth of the vil that you do.

      Your kind should be exterminated so we can survive.

  11. “A trillion here a trillion there, pretty soon you’re talking about real money.”


    *Quote updated to reflect inflation.

    1. You mean 2 trillion here, 2 trillion there, 2 extra trillion, and then propose spending 6 trillion more without mentioning the first 6 trillion and pretty soon you’re talking real money.

  12. We’re about to find out whether priming the pump in a really big way, as Robert Anton Wilson wrote, works. He was a fan of economic schemes that agreed with Keynes that people save too much for the good of the economy. One that RAW liked worked by means of self-depreciating currency that was like a hot potato and would inherently discourage saving. In one of his books this was hempscrip, in another the R.I.C.H. economy. How he figured people would voluntarily choose to deal with such money when they could instead store value by some means, I don’t know. But what we’re seeing now is just Keynes’s more conventional program of having government do the extra spending to reduce the proportion of saving. Somehow moving the money around faster is supposed to make us rich faster by having less in the way of resources idle.

    1. China’s dabbling in crypto that has a ‘spend by’ date is horrifying.

    2. Keynes was a pedo idiot. His theories are bunk and every one knows it..savings are good and to be used for investment to increase productivity. Its a nice self regulating cycle..productivity increases lead to more consumer spending and less savings..as productity peters out savings go up, rates go down signalling a need for innovation…all without any “experts” and their theories of “aggregate demand”…..keynes has killed more folks than pol pot

      1. Leftists really do include a disturbing number of sexual predators. Probably because it appeals to sociopaths and people with other malignant personality disorders.

    3. To be fair, Keynes only believes this applies during a recession when there were “idle resources”. One can certainly challenge him on that but he did not advocate government spending at all times. Indeed, when the economy is recovering as now he would have advocated cuts.

      1. Idle resources are hard to measure why..and honestly if widespread are due to artifically low rates and govt promoting unprofitable sectors…in other words..stop screwing with the money supply and get govt out of regulating and you won’t have the problem in the first place.

        1. Right I basically agree with that critique. The classical Keynesian approach prevents resources from quickly being reallocated to match consumer preferences after the malinvestments caused by credit expansion. But as I understand it Keynesianism is really a fiscal policy and Keynes believed whatever debt needed to be incurred during the bust had to be paid off during the boom.

  13. the annual budget deficit will settle in at roughly $1.3 trillion annually for the next decade

    , given that we make it past 2022.

    1. … and that current and wannabe politicians don’t figure out new ways to promise what isn’t there in exchange for votes, but cryptically coated in “fairness” or some other such drivel. And they will. Few politicians ever pass up the personal advantages of voting the largesse.

    2. This is a flat out lie.

      The total revenue for 2019 was like 3.8Trillion. 6 – 3.8 = 2.2. And that’s not even considering the money they’ve already spent.

  14. They’re waging war upon you.
    What are you gonna do about it?

    1. Continue to get rich from crypto?

    2. I prefer my enemies be relocated to landfills if they become a significant threat. Progressives are one such group.

  15. I would say this is like watching a train wreck; problem is we are all on the train as it hurdles into oblivion. And the engineer, fireman, brakeman, switchman, and conductor are all chimpanzees.

    1. The monkey pulled the throttle, the locomotive jumped the gun
      And did 90 miles an hour down the mainline run.

      Courtesy of the Grateful Dead.

      (Biden’s the monkey in this analogy)

      1. My mind went there too. Great song. But Biden is most certainly not the monkey in that song, 2nd verse ends:

        “Cause the monkey’s got the locomotive under control.”

      2. Demented monkey.

    2. And all the passengers are super excited for the end of the track! You can hear them chanting “Cliff! Cliff! Cliff! Cliff!”

      1. Many of the passengers are also of a lower order of primate.

      2. I thought the bar call was… “Norm!”

    3. They’re democrats. Chimps would be a step up.

  16. What part of the government can print as much money as it wants do you not understand? I am now told that fiscal conservatism is now deemed white supremacist because it can be linked to Austrian Economics and an infamous Austrian. Get with the program!

    1. MMT; works until it doesn’t.

    2. Yep…but honestly it will be fun to watch when the far left wokes start to ask why the Fed gets to print money and charge the govt interest which they have to pay…(and enrich the wall street elites) and push for the Treasury to print for free…ha ha..that will be very very funny….the last straw before the corrupt modern State fails..and liberty is again allowed to live in the US

  17. I see. So some are worried about 6 trillion. Then why do I get the sense that $5.4567 trillion will be a sane, rational and acceptable compromise? The more I come here, the more I don’t understand why this site is named ‘Reason.com’.

  18. Why continue the fiction that Biden is spending “only” 6 trillion dollars? The plan is already at 12 trillion (6 trillion in the “budget”, plus 2 trillion to recover from the lockdowns, 2 trillion to make community college affordable, and 2 trillion to de-crumble the infrastructure). Is that 6 trillion forgotten already?

    1. Plus NO government program ever costs what its creators claim; it always costs more.

  19. It’s just part of the Democrats plan to destroy the country and make everyone dependent on government with themselves in perpetual power.

    1. I think you may be on to something there.

      But maybe, just maybe, they really as so stupid, short sighted, self-serving, and myopic as to not see anything much beyond their next election cycle.

    2. That’s what they’ve done with blacks and minorities in every major city they control. There’s no other way to explain the decades of dismal, and declining, education in public city schools that have been almost totally controlled by democrats (and funded by over 99% of teachers union donations going to democrats in the past 30 years) for the past 50+ years.

      Pittsburgh is nearing 100 years of Democrat control and every single metric for minorities has gotten worse since the Civil rights movement.

      1. It could be the fact that blacks have been forced into ghettos and given less money and opportunity by their society and government because of centuries-long pervasive racism.

        Or it could be that they’re too stupid to vote for Republicans. That is your theory, is it not?

    3. Correct. So anything done to them is just self defense.

  20. It’s amazing the difference 2 seats in Georgia could have made.

    1. Geez don’t remind me; I’m pretty sure that is what the Reason staff was hoping for as the best possible option; just more gridlock instead of what we are now seeing.

      Just let it rot.

  21. Dear USA Citizens,

    [WE] Mob Democratic National Socialists (def; Nazi’s) would like your US Representatives to vote to allow us to CHARGE $333,000 on your credit cards…

    No worries though; [We]’ll only charge $82,250/yr for the next 4-years because no-one should be able to keep for themselves the “profit” of their labors.

    You didn’t make that; [WE] did.

    It’s cause we care,
    signed: The Party of Slavery.

  22. The Democrats are playing their role: ask for ridiculous increases so that Republicans can support large increases while claiming to be “responsible” by comparison.

  23. Come on…let’s do this…have the Fed print so much money the dollar loses its reserve status and the entire govt deficit spending, vote buying, criminal action regime ends…yes the media will blame everyone but govt when inflation hits, we get wage and price controls and even a war (I hope not) and perhaps the only way America can be liberated from Keynsian Bolsheviks once and for all…come on Corn Pop..print baby print

    1. The easier way is to get rid of the democrats. Through expatriation or more extreme means as necessary. Why do we keep dancing around this? They’re Marxist traitors and it’s our patriotic duty to eliminate them.

  24. Fake news. No demorat opposes over-spending. It empowers them

  25. So, low to negative rates for the foreseeable future.

  26. Two paragraphs in and you have:

    1) defined “governing” as being miserly in public spending, and

    2) defined social welfare as a matter of who deserves what.

    Stop calling yourselves libertarians and start calling yourselves moralistic busybodies, because that’s what you are. Your values are not the only values. Your values would have law completely ignore the unchecked acquisition of wealth by certain people while poking its nose into the private lives of the destitute. It’s just a bullshit evil horrible system of moral values. It’s inferior to almost any reasonable alternative I can think of.

    1. You’re a twisted idiot. And you can’t leave anyone alone. It will be good when Americans dispose of you and your masters.

  27. Let me start by saying there are things we need to spend money on, particularly infrastructure. That said should the economy come back it would be a good time to start looking at cutting spending. That may be difficult because the former administration came in during a good economy and spent like drunken sailors, including borrowing for tax cuts. The left leaning will say they got theirs we should get ours. It would be good to break this cycle and might benefit the D’s more than some of the spending people would like to see included.

    Here a novel idea that some might try. Cut some spending, raise some taxes, pay down the debt.

    1. What ‘Infrastructure’ is the Union of States (ironically created JUST for national defense) need to spend on?

      Go read your U.S. Constitution and stop pushing to conquer the USA with National Socialism (def; Nazism).

      1. Darn those Nazis. Building highways was practically the worst thing they ever did!

        1. They didn’t build the highways. PEOPLE did.. It was planned by State, City or County depending on what type of road/highway it is.

          But hey; Pathetic delusions about how everything (not just paved roads) is a U.S. Postal route has been the Nazi game for the last decade or more..

          Next Up; How killing the oil pipeline was actually a U.S. Postal route and the USPS cannot deliver mail without a solar panel B.S.

  28. “The spending plan demonstrates an unwillingness to govern and a preference for pandering to special interests.”

    Add “and for the corrupt Biden family to personally benefit and profit from.” and you have Joe Biden’s political career in a nutshell.

  29. And all those increased taxes won’t pay for it much less pay for the coming shortfalls in SS and Medicare. Only because we have complete public school failure to teach math and economics can this stuff survive as public policy.

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