On Tuesday, Democrats announced they had “reached a deal”, settling on a $3.5 Trillion Reconciliation Package. That’s in addition to the existing $579 Billion Infrastructure Bill.
The bill was passed without GOP interference, while a filibuster still remains over the bipartisan Infrastructure Bill.
With a national debt of ~$29 Trillion, the Federal Reserve will need to print ~4.1 Trillion more dollars, sinking our country deeper into debt, devaluing the U.S. dollar, while inflation skyrockets.
A [Budget] Reconciliation Bill—referred to as “Human Infrastructure”—can be permitted once per fiscal year, and can be used only to change existing laws related to taxes and spending. Senate rules require that most pieces of legislation get 60 votes, under the current Senate meaning all of the Democrats and 10 Republicans. However in the case of a budget reconciliation, the bill would require a simple majority of the senate to pass.
“The Budget Committee has come to an agreement,” Chuck Schumer announced to reporters following a closed-door meeting with Democrat lawmakers.
“You add that to that the $600 billion in a bipartisan plan and you get to $4.1 trillion, which is very, very close to what President Biden has asked us for,” Schumer said. “Every major program that President Biden has asked us for is funded in a robust way. We are very proud of this plan. We know we have a long road to go. We’re going to get this done for the sake of making average Americans’ lives a whole lot better,” Schumer said.
The Reconciliation plan expands Medicare benefits to include vision, hearing & dental. It also expected to include free Childcare, free College tuition, and address Climate Change.
On Thursday Childcare Payments up to $300 began to go out to families across America. While this might help in the short term—inflation, the rise of taxes, and the devaluing of the USD, counterbalances any long term solution.
What does all this mean for the American economy, how will this contribute to inflation? Looking at the American economy in June 2021 compared to the previous year, we can see last year’s frivolous government spending already starting to take effect:
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