We have a spending problem: Tax revenue up 60%, spending up 98%, debt doubles to $36 trillion

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The numbers are staggering, and the implications are dire. Over the past decade, while the U.S. federal government has seen a 60% increase in tax revenue, it’s been more than overshadowed by an almost 100% rise in government spending. From $18 trillion in national debt in 2015 to a mind-boggling $36 trillion today, the fiscal ship is sinking fast. Much of this explosion in spending is tied to expanded social programs, pandemic-related bailouts, and the relentless rise in interest payments on existing debt.

Fiscal year 2024 alone saw the U.S. government spend a staggering $6.75 trillion, far outpacing the $4.5 trillion in revenue it was able to collect. Social Security, Medicare, and defense—three of the largest budget categories—are among the biggest drains. In addition, large chunks of funding have been allocated to infrastructure and education. But perhaps the most alarming part of the budget is the nearly $1 trillion annually spent just to pay the interest on the national debt. When so much of the budget is tied up in servicing past borrowing, it leaves less room for essential services or future investments.

Economists are sounding the alarm, warning that this trajectory is completely unsustainable. The debt-to-GDP ratio now surpasses 120%, and that number isn’t just a statistic—it’s a red flag for future instability. As long as spending continues to far outstrip revenue, the deficit will only widen, pushing the nation further into debt. With policymakers under growing pressure to cut spending and reform taxes, it’s clear that the U.S. government will have to make some hard choices. If drastic measures aren’t taken soon, the economic consequences could be devastating, threatening the very foundation of U.S. financial stability.

Sources:

https://www.cato.org/briefing-paper/how-federal-government-spends-67-trillion

https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/

https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/