Nation’s Fiscal Health got $10 Trillion Worse in 2020
It’s no secret the federal government’s spending binge during the coronavirus pandemic was one for the record books. But now that some of the fiscal dust has settled, and before the nation plunges ahead with Mr. Biden’s $6 trillion schemes, what kind of financial shape is Uncle Sam really in?
According to Truth in Accounting’s new report, “The Financial State of the Union 2021,” things look pretty grim:
…the latest available audited financial reports found the U.S. Government’s overall financial condition worsened by $9.84 trillion in 2020. The coronavirus pandemic and related stimulus packages caused some of the deterioration because the government had to borrow money to weather the pandemic. If the federal government was properly prepared for a crisis with a true rainy day fund, it would not have had to borrow money.
The bottom line:
- The federal government has $5.95 trillion in assets compared to $129.06 trillion worth of bills.
- The outcome is a $123.11 trillion shortfall, which breaks down to a burden of $796,000 per federal taxpayer.
- This means that each taxpayer would have to pay $796,000 to get the United States government out of debt.
And remember, this is all before Congress takes up Mr. Biden’s $6 trillion worth of new spending (so far). Yes, he may succeed is offsetting some of it through higher taxes. But don’t count on those taxes to cover those promises. The debt will get even bigger, as will your portion of it.