The United States may soon spend more on interest than it does on military, Medicaid, or children’s programs, according to a report by the Congressional Budget Office, September, 25.
Here’s what that means for you
The Trump Administration has achieved many firsts. One of these is that for the first time in the nation’s history, the total national debt passed $20 trillion, and, if untreated, would reach $33 trillion by 2028. That makes its deficit 113 percent of its debt-to-GDP ratio.
Experts have calculated that if the US tops 77%, it’s unlikely to repay debtors, including the public, Federal Reserve and foreign governments. Forget it, the Trump Administration has turned the $9.4 trillion debt increase forecast they inherited from Obama into $13.4 trillion. That’s a nearly 50 per cent increase, growing all the time.
To put it into figures that we can recognize, the US national debt has not only grown more than its own GDP, but has risen higher than the GDP of its next three largest nations – China, Japan and Germany – combined.
Here’s how it concerns you
With less money trickling in and more going towards interest, the Government will have to shave money off from basics, like fixing planes, paving roads or hammering bridges. There’s also less money for innovations and strengthening the military. Since the government borrows from trust funds for programs like Social Security and Medicare, such resources will likely be starved by 2032.
“It’s very much something to worry about,” C. Eugene Steuerle, a fellow at the Urban Institute and a co-founder of the Urban-Brookings Tax Policy Center in Washington told The New York Times. “Everything else is getting squeezed.”
On the other hand, if you believe America comes first, why not continue the MAGA stuff and fret about the Debt later?
Indeed, Republicans are largely silent, even proposing “reforms” that would exacerbate the deficit. In February, Trump signed a bill to raise federal spending by $300 billion over three years, and in September his Republicans proposed legislation that would make the tax cuts permanent.
Two problems: First, the economy’s great now, but what when things go bad… where’s the money then? Second, there’s the problem of those who need it – and that’s 99% of our population.
We’ve got a childish government, critics say. We’re in uncharted territory, economists say. Turn out the lights. Critics fear the party’s over.