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Strong reaction to Biden's ask of $105 billion, concerns of growing national debt

More government spending may have long-term impacts to taxes, interest rates
Posted at 5:35 PM, Oct 20, 2023

COLORADO SPRINGS — President Biden made a case for wartime aid to Ukraine and Israel in an address from the Oval Office Thursday.

The President is asking Congress for $105 billion in total aid. The national debt is more than $33 trillion, according to the United States Department of Treasury.

"[Government spending] is a concern, it's not a crisis," said UCCS Economist Dr. Craighead.

Some say the money should stay in the U.S.

"I believe that first and foremost the American people should come first before anybody else, rather than worrying about some other foreign war that we shouldn't even be involved in," said one Denver resident Joshua Moser.

The president's national security package proposal would make the total debt go up by around 0.3%.

Dr. Craighead said the national debt is still manageable, "but it is something that going to require some difficult decisions about spending and taxation."

Treasure data shows the government, since last October, spent $1.7 trillion more than it's taken in.

Dr. Craighead said at some point, interest and mortgage rates could rise to balance government spending. He said if our country keeps spending money at this rate, tax increases and federal program cuts could also be possible down the line.

"We certainly the economic capacity to make some adjustments to get that resolved but it's you know difficult politically, nobody in Washington wants to talk about increasing taxes," said Dr. Craighead.

"It's pretty crazy actually," said Moser. "I really don't like it, it's just for so many people that work 30, 40, 50, 60 hour [work weeks], they barely make the rent here in Colorado as it is."

The $105 billion ask includes $60 billion for Ukraine and $40 billion combined for Israel, and Taiwan and to fortify the US-Mexico border.

That funding request was sent to Congress Friday. It's unclear if Congress will be able to pass it before a potential shutdown in November because of the on going speaker situation in the House.

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