Following Senate approval of the new $1.9 trillion CCP Virus relief package pushed by President Joe Biden, and several announced measures promoting a sharp increase in government spending by the federal government, Sen. Rand Paul (R-Ky.) warned that high congressional spending is setting the United States on track to become “the next Venezuela.”
The Senate narrowly approved the CCP Virus relief plan on Saturday, March 6, after a marathon overnight session in a key vote that defined the government’s new stimulus controls, which were deeply criticized by Republicans and conservatives as a whole, who claimed that the relief package makes available an exaggerated and mismanaged amount of taxpayer funds that far from generating “relief” will bring more problems down the road.
Paul, was one of the great critics of the relief package during the previous weeks, during the debate in the Senate and after its approval he continued his criticism on his Twitter account.
“New 1,000,000 bolivar note in Venezuela worth 53 cents,” Paul said on Twitter in a message in which he attached a Bloomberg note on hyperinflation in Venezuela.
“Will US be the next Venezuela with Congress borrowing over $6 trillion in one year?” continued Paul.
New 1,000,000 bolivar note in Venezuela worth 53 cents. Will US be the next Venezuela with Congress borrowing over $6 trillion in one year?
Hyperinflation Pushes Venezuela to Print 1,000,000-Bolivar Bills – Bloomberg https://t.co/IzPGWrNAwv
— Senator Rand Paul (@RandPaul) March 7, 2021
Sen. Mitt Romney (R-Utah), also expressed dismay over some of what he identified as wasteful spending in the bill, including providing billions of dollars in financial assistance to states that don’t need it, including his own state.
“We’re going to be asking the American people to allow us to borrow money from China and others, pass that on to our kids and grandkids so that we can send money to states like California and mine that don’t need the money,” Romney said. “That doesn’t make any sense at all.”
The bottom line is we have a relief package with overblown and misapplied amounts. Add to that other new policy provisions that help to significantly increase government spending. As if this were not enough, the new energy measures, such as the cancellation of the Keystone XL pipeline project, triggered a trend that does not seem to be slowing down the considerable increase in fuel prices, which is quickly reflected in mass consumer goods.
The inevitable result of this combination of measures is none other than a generalized increase in prices, as Paul warned. This vicious economic process being carried out by the Biden administration is common in underdeveloped countries such as Venezuela and other Latin American and African countries. Governments with high public spending waste taxpayers’ money, generate fiscal deficits, devalue their currencies, increase inflation, go into debt, and waste it again.
Criticism of the new relief package focuses mainly on the fact that many of the planned expenditures have nothing to do with CCP Virus relief, but rather with the progressive agenda of the left liberals.
The bill allocates for example $300 million for the Department of Agriculture to provide a payment in an amount equal to 120% of the outstanding debt of “socially disadvantaged” farmers or ranchers beginning January 1, 2021. Seeking to thereby “alleviat[e] discriminatory barriers preventing socially disadvantaged farmers and ranchers from fully participating in the American farm economy,” The Blaze reported.
Whether the measure is bad or not is beside the point. What is clear is that it has nothing to do with the crisis caused by the CCP Virus and therefore its implementation should be discussed separately and not included in a relief package aimed at a specific crisis.
The bill also provides another $1 billion to the same group for “outreach, mediation, financial training, capacity building training, cooperative development training and support, and other technical assistance to socially disadvantaged groups.”
Among other items the bill also provides $10 million for the “preservation and maintenance of Native American languages.”
Critics also point out that much of the money in the package is destined to sectors of society that do not really need it and will eventually put that money into savings and not reinvested in the system, which is what is sought with this type of measure aimed at reactivating the economy.