The United States borrowed $1.5 trillion in the first ten months of fiscal year 2024, including $242 billion in July, according to the latest Monthly Budget Review from the Congressional Budget Office.
The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
We’re nearly at the end of fiscal year 2024, and while most of America is focused on the momentum in the race for the White House, beneath the surface our nation’s fiscal health has continued to worsen. We’ve just surpassed $35 trillion in gross debt, and today’s CBO projections estimate we’ve borrowed another $242 billion in July, or $5 billion each day this fiscal year.
Regardless of who wins this November, the next president will have to confront a laundry list of fiscal decisions shortly into their term, including trillions in expiring tax provisions, a debt ceiling that will need to be raised or suspended, expiring spending caps, and major trust funds edging ever close to insolvency. These decisions will have lasting impacts beyond the next four years, whether we choose to address them thoughtfully and responsibly, or whether we choose to continue down the path of careless indifference.
Our fiscal trajectory cannot be left on autopilot – the stakes are far too high and the consequences far too steep to leave our national debt climbing in perpetuity. Considering the sheer size of the challenges we already face – interest costs on course to exceed our defense and Medicare budgets, deficits barreling toward $2 trillion, and no plan in the works to turn things around – how can we afford to sit idle any longer?
Rising national debt causes risks – eventually. Why aren’t our leaders focused on the risk, why aren’t American voters?
It seems what gets voters motivated is school yard name calling and bullying and a desire for more unfunded programs from government.
Despite claims to the contrary, borrowing is not free, and the national debt cannot be indefinitely ignored. High and rising deficits and debt can lead to persistently high inflation, rising interest rates, slower economic growth, increased interest payments, reduced fiscal space, greater geopolitical risk, and growing generational imbalances.
Source: CRFB
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Americans think someone else will pay as politicians pander – a la Biden, no increase for anyone earning under $400,000, or Trump, Mexico will pay to build the wall.
Harris, the Bernie clone, is certainly a believer in MMT – look at what she supported in the Senate, a tenth of a step from Communism – oligarchy government control of housing, energy, nearly everything OTHER THAN DEBT.
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I agree that self interest and kicking the can down the road are part of the problem but I also would add some Congress types are believers in the MMT and therefore they think money can just be printed. In addition there is such disagreement on what should be done. We are basically reaching the point where the country is becoming ungovernable.
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It has been judged by the political powers that be the consequences for reducing government debt are far worse now than some unknown date for worse consequences.
So inaction to greatly reduce rising debt seems to be working. A classic case of “kicking the can down the road”.
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The politicians don’t care. They assume when the crap hits the fan they’ll be out of office. And they are too busy buying votes to keep their jobs.
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