Speaking Friday at the White House, President Biden said the deficit fell this year by $1.4 trillion, "The largest one-year drop in American history." And with just a couple of weeks to go before the midterm elections, he also took the opportunity to bash Republicans.
"The Republican plan would add about $3 trillion to the deficit. $3 trillion. That's their plan," the president stated. "That's what they did under my predecessor, and that's what they intend to do again. Adding another $3 trillion to the deficit is reckless, it's irresponsible, and it would make inflation worse."
But Alfredo Ortiz, president and CEO of the Job Creators Network (JCN), says Biden is not being entirely honest. He points out that the president's student loan plan alone will cause the monthly deficit to jump tremendously.
"The deficit under Biden is still projected to be about $1.4 trillion, which is grossly excessive since the pandemic is over," Ortiz reports. "The reason the deficit remains so high is because of Biden's record spending and anti-growth policies, which have also caused the worst inflation in four decades."
The Associated Press reports that the budget figures the Treasury Department released on Friday reveal "dueling visions about what it means to be financially responsible: Biden can rightly claim that the budget deficit for fiscal 2022 plunged $1.4 trillion from the prior year; critics can use the same report to say that forgiving education loans pushed up the federal debt by roughly $400 billion as the government booked the full expense."
JCN is suing the Biden administration to stop the government's "illegal and economically-damaging student loan bailout." According to one op-ed, the lawsuit can set the stage for solving debt crisis.
"We remain confident that we will prevail in court and deliver a victory for small businesses and the American people," Ortiz tells AFN.
In May, the Congressional Budget Office expected the federal deficit to fall in 2023 and then start to rise in the years ahead to $2.25 trillion a decade from now.