In the complex dance of economic indicators, one glaring truth stands out: America’s debt problem is reaching dangerous levels. If Congress fails to rein in its unchecked spending, the country faces an imminent debt crisis.
The latest economic numbers paint a grim picture. Inflation remains elevated, real wages are down, and workers find themselves thousands of dollars behind where they were in January 2021. The culprit? Washington’s out-of-control deficit spending, exacerbated by pandemic-related economic challenges.
During the pandemic, spending spiraled out of control, with Washington pumping more dollars into the economy than it could handle. The result? The worst wave of inflation since Jimmy Carter’s era. Deficits, far higher than pre-pandemic levels, continue to exert relentless upward pressure on inflation.
Looking ahead, deficits are projected to surge from $1.5 trillion to $2.5 trillion over the next decade, assuming no recessions or wars intervene – a highly optimistic assumption. Rising interest payments on the debt, coupled with the maintenance of Social Security and Medicare, contribute to this concerning trajectory.
Despite the harmful consequences of overspending, Washington’s elite seems oblivious, clinging to an entitlement mentality for endless dollars to fund their special interests. Budget rules are waived, and fraudulent accounting gimmicks are employed with alarming frequency.
The last significant deficit reduction occurred during the Tea Party movement, a reminder that Washington responds when citizens apply pressure. However, Americans can’t rely on the status quo to change; they must actively demand fiscal responsibility.
Adding to the urgency, the US government’s interest payment has exceeded $1 trillion, surpassing defense spending. The inflation-adjusted US government spending since 2020 outstrips the combined spending of World War I, World War II, and the period from 1970 to 1990. This unsustainable trajectory is poised to go exponential, presenting a dire outlook for the nation’s economic stability in the coming years.
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If Congress doesn't get serious about controlling spending in Washington DC, a debt crisis becomes a certainty.
This is not complicated. If your national debt grows at a much faster rate than your economy, something is going to break eventually. t.co/m0tDtplAtB
— Kevin Roberts (@KevinRobertsTX) February 16, 2024
It's in the nature of the monetary system for these ratios to go exponential.
In the short term, something might give way, but in a few years, we'll be repeating this conversation as the debt level has surged exponentially. pic.twitter.com/mS05NNJ3UJ
— Phoenix Capital (@PhoenixCapitalH) February 15, 2024
It surpassed defense spending a while ago: pic.twitter.com/6hLo6fysum
— Phoenix Capital (@PhoenixCapitalH) February 15, 2024