Courtesy of Mike Belsick, FTP Focus Leader
I am sadly amused by all of the recent Debt Ceiling Limit debate in DC. People in DC are so “inside the box”, what some would call the “swamp”, that they cannot see outside of the box. The problem is that Congress has approved so much spending over the years that the Treasury is unable to make payments without borrowing more money. No American family can do this, why should the US government?
The $31.86T US debt, which in perspective, is $94,000 owed by every adult and child living in America, or $572K by every current US taxpayer. How did we get in this mess? Politicians love to spend money to “buy” votes. How else would you describe a pledge to pay off all student loans or Reparations? This spending habit is also very non-partisan. Both parties do it and always have.
If truth, a rare thing in DC, was told, the US debt levels are already at unsustainable levels! The Government Office of Management and Budget (OMB), the Department of Treasury, Congressional Budget Office (CBO) and Government Accountability Office (GAO) just all said the same thing in May 2023. Rising debt, relative to economic growth, could increase borrowing costs for both the federal government and private borrowers which could slow US economic growth. The CBO has stated that high and rising federal debt as a share of the economy increases the risk of a federal crisis. The underlying conditions driving the unsustainable fiscal outlook pose serious economic, security, and social challenges if not addressed. Was this issue discussed in Congress with the Debt Ceiling debate? No! It was ignored.
Here is what all of these agencies all agree will happen under this current spending habit. “Our simulation shows debt held by the public growing more than 219 percent of GDP – more than twice the size of the economy – by 2051.” The Hospital Insurance (HI) Trust Fund (Medicare Part A) will be able to pay 100 percent of total scheduled benefits up until 2031, three years later than previously reported last year. At that point, the fund’s reserves will become depleted. The Old Age and Survivors Insurance (OASI) Trust Fund (Social Security) will be able to pay 100 percent of total scheduled benefits only up until 2033.
https://www.gao.gov/products/gao-23-106201
Instead of arguing about the debt limit, which is like arguing about placement of the deck chairs on the Titanic as it is sinking, we need to address how to cut government spending. We must significantly cut government spending. One way to do that is to significantly cut the government employee numbers. I would certainly cut the number of Justice Department, Intelligence, and FBI employees. I would also disperse the remaining government employees into new office spaces in locations not nearly as expensive as DC. How about Middle America (Red States)?
As Mark Levin recently said: “After 2033, 2034 at the latest, there will be no more funds available to pay for anything because the government has stolen it. Nothing that the Republicans currently proposed (during the debt Limit discussions) will fix this problem!”
We have a spending problem that will cripple the US economy unless we do something drastic starting today. Cutting spending may be an undesirable option, but the consequences of a total economic collapse will be far worse.