Stanley Druckenmiller says government needs to stop spending like 'drunken sailors,' cut entitlements

cnbc.com:

Billionaire investor Stanley Druckenmiller said the federal government has been spending recklessly and failed to issue debt at low rates in past years, mistakes that will ultimately lead to some tough choices in the future like cutting Social Security.

«We are spending like drunken sailors,» Druckenmiller said on CNBC's "Squawk Box" Wednesday. «Don't forget pre-Covid… the federal government was 20% of GDP in spending. Now it's 25% of GDP… My father told me if you're in a hole, stop digging Stan.»

The legendary investor, who now runs Duquesne Family Office, said he was disappointed to find out that the White House is seeking another $56 billion in emergency spending for disaster relief and childcare programs, in addition to the $106 billion the administration wants for Israel and Ukraine.

The federal government wound up its fiscal year in September with a deficit just shy of $1.7 trillion, up about $320 billion, or 23.2%, from fiscal 2022. The budget shortfall adds to the staggering U.S. debt total, which stood at nearly $34 trillion.

Druckenmiller said government entitlement programs, which make up almost half of the federal budget, might be forced to be pared down in the future. He proposed a cut in Social Security benefits.

«I want to go after entitlements. It's where the money is,» he said. «This generation has got to take a cut....right now current seniors, you're going to get 100 cents on the dollar. Future seniors looking at five or 10 cents on the dollar, is it not unreasonable for us to go to 85 or 90 cents on the dollar?»

Despite his calls to cut overall spending, the widely followed investor stressed that it's necessary for the U.S. to support Ukraine and disagrees with Republicans urging to stop funding in