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Biden’s Latest Spending Plan: More Inflation?
The Biden administration has or is planning to get approval for spending a total of $6.0T in additional spending this year. This is on top of the regular budget. It also comes after around $9.7T of monetary expansion under the last year of the Trump administration, both in direct spending and Federal Reserve asset purchases (the Fed’s balance sheet has remained largely flat since mid-December). For comparison, the US spent around $4.1T (in 2020 dollars) on military deployment during WWII (that is, buying aircraft carriers, but excluding the cost of building the shipyard). Of course, the relative size of the economy ... (full story)