How do you feel about federal government spending?

I took the test on the Committee for a Responsible Federal Budget site to see my philosophy on spending. Here is what the results showed.

I’m a futurist and I agree with that.

The best is yet to come

The Futurist believes in planning and spending for the future in a sustainable way. Futurists believe in making investments in research, infrastructure, climate change, or spending on children to ensure they grow up healthy and educated.

While a strong federal government is needed to encourage investment and spending on children, Futurists believe that spending programs should be paid for with enough tax revenue to cover their cost so later generations do not inherit an unsustainable level of federal debt.

When federal debt becomes a problem.

The level of federal debt is a significant and growing risk for the United States economy. Here’s a breakdown of why:   

Current Situation:

• As of March 6, 2025, the U.S. federal government debt stands at approximately $36.56 trillion.   
• The debt-to-GDP ratio, a key indicator of the country’s ability to manage its debt, was around 122-124% as of December 2024. This level is exceptionally high, exceeding the peak seen after World War II.
• The Congressional Budget Office (CBO) projects that under current laws, federal debt held by the public will rise from 99% of GDP in 2024 to 116% in 2034 and potentially 172% in 2054.

Why is this level of debt a risk?

• Increased Interest Costs: As the debt grows, the government spends more on interest payments. ^{In fiscal year 2024, net interest costs were $881 billion, and they are projected to rise to $1.8 trillion by 2035. This increasing expenditure can crowd out crucial public investments in areas like education, infrastructure, and research and development, hindering economic growth.}   
• Risk of Fiscal Crisis: A high debt level can make investors lose confidence in the U.S. government’s ability to repay its obligations. ^{This could lead to a fiscal crisis characterized by a sudden and sharp increase in interest rates and a decline in the value of the U.S. dollar, potentially triggering a global financial crisis.}   
• Inflationary Pressures: Elevated federal debt can increase the risk of inflation. Persistent deficits can boost aggregate demand, and if the Federal Reserve reacts by raising interest rates, it increases borrowing costs for consumers and businesses. Some economic models suggest that a permanent increase in the deficit could lead to a significant loss in household purchasing power over time.
• Reduced Economic Growth: Many studies suggest a negative correlation between high debt levels and economic growth. Increased government borrowing can lead to higher interest rates, crowding out private investment in business equipment and structures. This can stifle innovation, slow productivity growth, and lead to stagnant wages.
• Burden on Future Generations: Current borrowing is often financing current consumption, which benefits the present generation but places a greater financial burden on future generations through higher taxes or reduced government services. Rising debt as a share of GDP means that future living standards could be lower than they would otherwise be.
• Limited Flexibility to Respond to Crises: A high debt level leaves policymakers with less flexibility to respond effectively to unexpected economic downturns, national security threats, or health crises. The ability to implement fiscal stimulus or provide necessary relief may be constrained.
• Challenges to National Security: Some experts argue that high national debt can be a national security risk by making the U.S. more dependent on foreign creditors and limiting resources available for defense and security investments.
• Jeopardizing Social Programs: If the government lacks sufficient resources due to high debt and interest payments, essential social safety net programs like Social Security and Medicare could be put at risk.

It’s important to note that:

• There is no specific debt-to-GDP ratio that automatically triggers a crisis. The risk depends on various factors, including investor confidence, economic growth prospects, and the government’s fiscal management.
• Historically, debt levels have risen during wars and recessions but then declined. However, the current trajectory shows a sustained increase even during periods without major crises.

In conclusion, while the U.S. has historically managed high debt levels, the current and projected levels pose significant risks to the nation’s economic stability, growth potential, and the well-being of future generations. Addressing the structural imbalance between spending and revenue will be crucial to mitigating these risks.

From a variety of private and public sources