Former House Speaker Newt Gingrich predicted in an op-ed on Monday that congressional Democrats uniting to pass a gargantuan spending package while inflation rages throughout the economy will be “political suicide” for their party.
Gingrich noted that Democrats are set to pass a $3.5 trillion spending bill filled with a liberal wish list including many “Green New Deal” provisions on top of a $1.2 trillion bill the Senate is expected to pass this week that contains about $600 billion in money for what is considered to be ‘traditional’ infrastructure such as building or repairing roads, bridges, waterways and airports.
But that new spending will come on top of trillions already spent on “COVID-19 relief” and will dramatically increase the already burgeoning national debt while worsening inflation at a time when Americans are already paying a lot more for consumer goods, commodities, and services.
“The $3.5 trillion spending bill set up to follow the $1.1 trillion infrastructure bill (which has little to do with infrastructure) should be called what it really is: The Higher Inflation and Bigger Debt Act,” Gingrich wrote at Fox News.
The former GOP House Speaker from Georgia went on to cite a report from the non-partisan Congressional Budget Office, which recently issued a report regarding the country’s current fiscal situation even before both new multi-trillion-dollar spending bills are passed.
“By the end of 2021, federal debt held by the public is projected to equal 102 percent of GDP. Debt would reach 107 percent of GDP (surpassing its historical high) in 2031 and would almost double to 202 percent of GDP by 2051,” said the CBO report.
“Debt that is high and rising as a percentage of GDP boosts federal and private borrowing costs, slows the growth of economic output, and increases interest payments abroad,” the CBO added.
“A growing debt burden could increase the risk of a fiscal crisis and higher inflation as well as undermine confidence in the U.S. dollar, making it more costly to finance public and private activity in international markets,” the report continued.
Gingrich noted that former Democratic Secretary of the Treasury Larry Summers is one of among several fiscal experts who are sounding alarm bells about pouring trillions more dollars into an economy that is already awash in liquidity, which he believes “will lead to potentially massive inflation.”
“Those Democrats old enough to remember the Jimmy Carter presidency must be worried about the damage high prices did to Carter’s re-election,” Gingrich wrote.
“The $3.5 trillion reconciliation bill is $27,000 for every American. There is no way an already bloated, inefficient, and theft-ridden bureaucracy can spend it intelligently. The Democrats simply can’t stop themselves,” the former Speaker added.
That said, nearly half of Senate Republicans joined with 49 Democrats over the weekend to advance the $1.2 trillion infrastructure package, which led to intense criticism from former President Donald Trump.
In a Sunday statement, Trump said the measure isn’t about “infrastructure” so much as it’s about the “beginning of the Green New Deal,” a massively expensive proposal first offered by Rep. Alexandria Ocasio-Cortez, D-N.Y., that would impose costly measures on American consumers and businesses under the guise fo combatting climate change.
“[T]his is not an infrastructure bill, this is the beginning of the Green New Deal,” Trump wrote.
“The bill I proposed, which Mitch McConnell couldn’t do anything with, was pure infrastructure. I want what is best for America, not what’s best for the Communist Democrat Party,” he added.
But Trump predicted that the passage of the bill would be an advantage for Democrats come next year’s 2022 midterms.
“This will be a big victory for the Democrats and will be used against Republicans in the upcoming elections. Schumer is using the threat of ‘we can do it the hard way or do it the easy way’ and keeping people in town. McConnell never did that on a real infrastructure bill. Hopefully the House will be much stronger than the Senate,” he added.
Gingrich, however, sees the passage of both measures as politically bad for Democrats.
“If the economy keeps slowing, and the inflation keeps rising, the 2022 election will be a drowning time for failed Democrats,” he wrote.
“The next time some member of the House or Senate tries to sell you on the positive aspects of the $3.5 trillion reconciliation bill, remember that the price tag for all the goodies may be raging inflation, a dramatically higher debt, and a much weaker economy,” he added.
Syndicated with permission from USA Features News.