Senator Rand Paul raised concerns about excessive government spending on Twitter this past Sunday, showing how Congress’ endless borrowing could put the U.S. economy in the same situation as Venezuela’s.
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
Paul’s comments came the day after the massive $1.9 trillion relief bill passed the Senate with a 50-49 vote. Mitt Romney also decried what he sees as wasteful spending in the bill, particularly, spending billions in financial assistance to already wealthy states.
Romney points out that the borrowed money is largely going to be coming from China, and that the burden will be passed “on to our kids and grandkids,” to enrich “states like California.”
The Venezuelan economy has deteriorated due to years of hyperinflation, volatility in oil prices and the coronavirus pandemic. Their central bank had to issue a new banknote that is worth 1 million bolivars, equal to 52 American cents. Consequently, many Venezuelans simply use U.S. currency to perform transactions.