“Don’t Ask About the Exploding Deficit,” White House Press Secretary Dodges Queries on Soaring Deficit

William FurneyOct 12, 2023

Minute Read

The United States’ ballooning deficit is not something the administration of President Joe Biden can discuss, and it’s best to ask an economist, the White House insists.

Biden’s ‘Responsible Policies’

President Biden was fiscally responsible and his policies had not contributed to the doubling deficit, White House Press Secretary Karine Jean-Pierre said at a regular press briefing on Monday.

Downplaying the Deficit

The US deficit was due to periodic “volatility” in the market and for a better understanding of the reasons why it had grown so large, reporters should “talk to an economist” instead, said Jean-Pierre.

Record Budget Deficit

The federal budget deficit surged to a record $1.7 trillion for fiscal year 2023 ending on September 30, the Congressional Budget Office said on Tuesday. Revenue for the period came in at around $455 billion, which was 9% lower than the previous year, it said.

The deficit for 2022 came in at $1.3 trillion.

Student Debt Cancellation

One factor that weighed heavily on the deficit was President Biden’s decision to cancel student debt, the office said.

“Actions related to the Administration’s plan to cancel outstanding student loans for many borrowers resulted in largely offsetting changes to the deficit in 2022 and 2023,” it said in a statement.

Covid 19 Budgetary Easing

Some budgetary respite came during the pandemic years, noted the head of the Committee for a Responsible Federal Budget, a non-profit based in Washington.

“After declining in recent years due to the pandemic ending, the deficit is now back on the rise,” said Maya MacGuineas, in reaction to the newly announced record budget deficit.

‘Better Preparation Required’

MacGuineas urged the Biden administration to properly “address the debt.”

“At a time when the economy is growing and unemployment remains near historic lows, this should have been a time to reduce deficits in order to help us better prepare to respond to future economic downturns or foreign crises,” she said.

Biden’s Budgetary Claims

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President Biden says his fiscal and other policies have resulted in a reduction of the US federal budget, but some say that’s because the pandemic and emergency spending is over.

Economists point to higher levels of federal spending since the pandemic ended as well as higher interest rates as the main reasons for the record deficit last year.

Republicans’ Tax Cuts

Should a Republican candidate win next year’s presidential election, it would most likely lead to an even bigger federal deficit, President Biden has warned.

The GOP would “cut taxes for the very wealthy and big corporations,” heaping further pressure on the federal budget, the president said in a speech last Friday.

‘Big Debt Reduction’

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President Biden said he not only slashed the US debt pile but also forced corporations that were paying little or no tax to pay up.

“I was able to cut the federal debt by $1.7 trillion over the first two-and-a – two years. Well, remember what we talked about. Those 50 corporations that made $40 billion, weren’t paying a penny in taxes? Well guess what – we made them pay 30%. Uh, 15% in taxes – 15%. Nowhere near what they should pay. And guess what? We were able to pay for everything, and we end up with an actual surplus,” he said.

Adding Millions of Jobs

The economy is much better off under President Biden, compared to his predecessor, Donald Trump, because under Biden, the country has added more than 12 million jobs, the White House says.

‘Bottom Up’ Approach

President Biden’s economic policies are based on “[growing] the economy from the bottom up and middle out, not the top down,” the White House said in a statement.

“Over the past two years, in the face of significant challenges, that economic strategy has produced historic progress for the American people,” it said.

Republicans ‘Clueless on Economy’

The Republican Party had no plan to deal with the expanding federal deficit and would only make matters worse, should they return to the White House, Press Secretary Jean-Pierre said in her briefing on Monday.

$1 Trillion Budget Trim

President Biden and his economic team had managed to slash $1 trillion off the budget deficit, Jean-Pierre said.

2024 Presidential Race

The economy is likely to feature high on voters’ minds and the agendas of candidates battling it out in next year’s presidential election. President Biden has announced he is seeking re-election, even though some are concerned about his age, 80, and public stumbles in recent outings.

Trump Hopes

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Former president Trump is also hoping to get back to the White House, after losing to Biden in 2020, and is currently leading the pack of candidates looking for the Republican Party’s nomination for the race. Major legal hurdles, however, threaten to impact Trump’s campaign leading up to the election, in the form of federal and civil court cases relating to fraud and the 2020 election results.