Remember the Republican National Convention in 2012? At that time, the issue of national debt was so important to the Republican Party’s platform that the set design of the conference showed a real-time ticking debt clock, close to 16 trillion U.S. dollars.
Vice-presidential candidate Paul Ryan is a conservative tax and budget expert. He supports policies that slow debt growth at an alarming rate to what he considers to be a dangerous fiscal cliff, which is not a priority for his opponents.When Obama was elected in 2008, the debt was US$10 trillionAfter battling the Great Depression, by the end of his second term, it almost doubled to $19.5 trillion.
The biggest problem is that the GDP growth has not been commensurate with the debt. There is a school that understates the growing red ink rather than touts that the debt-to-GDP ratio is more relevant.Brief history ratio It proves why the “school” has been closed.
Interestingly, in the month Richard Nixon resigned from the presidency in August 1974, this rate fell to 30.86%, which was the lowest level in the 1970s.
By the end of that decade, this figure had risen slightly to 31.03%.
Jumped to 51.38% at the end of the 1980s
The 20th century ended with debt accounting for 58.35% of GDP.
Then came the 9/11 attacks. As a result, the government’s efforts to fight the war on terrorism, including Afghanistan and Iraq, caused the proportion to rise sharply, rising to 92.02% by the end of 2010.
In 2020, the COVID pandemic caused the US economy to collapse.By October, the government had already spent US$4 trillion Among various economic aids, this proportion will be increased to 129.09% by the end of the year.
According to today’s debt clock, this figure is 127.99%, which is a slight decrease from December 31, but it is still unstable.
Does the government expect that this unsustainable rate will decline when the economy returns to “normal”?
Unfortunately, no, according to Two U.S. government agencies.
The Congressional Budget Office provides economic and budget data to lawmakers, and it is estimated that this number will reach 124.56% by 2025. Even more daunting are the forecasts of the Office of Management and Budget. Institutions within the executive branch expect the rate to increase to 138.69% in 2025-10.7 percentage points higher than today! That is your government at work.
But even more jaw-dropping is the non-government U.S. debt clock Forecast for 2025, Based on the current growth rate. It shows that the national debt reached 50.1 trillion U.S. dollars, the GDP reached 26.7 trillion U.S. dollars, and the debt-to-GDP ratio was as high as 187.86%.
What effect do all these numbers have on the average American? The cost of living and any expenses you want to finance may be higher. In March 2021, CBO issuance A report titled “Long-term Budget Outlook for 2021” stated:
“The rising debt as a percentage of GDP will increase federal and private borrowing costs, slow the growth of economic output, and increase foreign interest payments. Increasing debt burdens may increase the risk of fiscal crises and rising inflation, and Weakened confidence in the U.S. dollar, thereby increasing the cost of financing public and private activities in the international market.”
What is the primary reason for the US government to invest itself in the deepening fiscal crisis? The answer is simple. Our government is trying to maintain its position as the world’s superpower in the highly competitive 21st century global economy, while modernizing its infrastructure and meeting the needs of the people.
However, the cruel fact is that our economy does not generate enough income to cover the costs of completing these three tasks. For example, today the U.S. debt clock shows that federal taxes are $3.4 trillion.This is only a small part of the government debt Unreserved liabilities US$149.2 trillion-promised to pay to the American people.
Our country cannot follow this path forever, because at some point, there will be forced cuts in rights, and worse, the country is unstable.
National needs in excess of income also greatly apply to infrastructure. President Biden blatantly introduced a $2 trillion infrastructure bill that expanded the traditional definition of the term.If the bill Managed to pass, Will greatly increase the national debt. The demand exists, but the funds do not exist. Everyone sees crumbling roads, bridges, and now the arduous task of strengthening the network system that runs critical infrastructure. Colonial pipeline hackers have demonstrated the weakness of our country-making our enemies happy.
In addition, Biden’s new $6 trillion The budget proposal looks like the debt clock’s forecast of $50 trillion in national debt by 2025 may be on the right track.
But the most serious crisis facing our country is the denial of the debt crisis. Conversely, when government spending far exceeds the ratio of taxes to GDP, our weak leaders are afraid to agree with the American people on the impact of rising debt. When was the last time you heard a president or leader of any party talk about this painful issue publicly? However, any solution starts with recognizing the problem. The Republican Party was once a leader on the debt issue, and now it should lead again.
Therefore, I suggest that the Republicans remove their Treasury debt clock from the 2012 General Assembly and hang it on the floor of Congress. At least then, our country’s fiscal doomsday crisis will be undeniable because it faces the leaders.