We can’t control what others do and we can’t stop misfortune from striking. But we can control our own actions. Those who are financially prudent will most likely enjoy success, even if events don’t always go their way.
The gross national debt of the United States reached $39 trillion yesterday, according to the U.S. Treasury. The gross debt reached its previous milestone of $38 trillion in October of last year. Meanwhile, debt held by the public – the measure of debt preferred by economists – stands at over $31 trillion.
The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
Surpassing $39 trillion in gross debt is an embarrassing milestone that both parties have helped build over decades, and neither seems particularly interested in addressing it before we hit $40 trillion.
No matter what metric one chooses to examine our fiscal trajectory, we are clearly headed in the wrong direction. Gross debt is now $39 trillion; debt held by the public recently surpassed $31 trillion for the first time; deficits are approaching $2 trillion; and deficits as a share of the economy are twice as large as the 3% goal many economists and bipartisan policymakers believe we ought to be targeting.
Markets are paying close attention to our fiscal situation, and every time we hit a new milestone, we risk spooking them.
Choosing to abandon our fiscal responsibilities like this does not exist in a vacuum; in fact, it wreaks havoc on our economy and everyday life. Higher debt exacerbates inflationary pressures, squeezes out investment in our economy, allows interest costs to dominate our defense spending, leaves us vulnerable to emergencies and geopolitical turmoil, and could even provoke a fiscal crisis.
Rather than ignoring these milestones as both parties have largely done, policymakers should acknowledge them for what they are and begin pivoting toward a more stable course. That means committing to No New Borrowing, establishing a fiscal goal for the nation like 3% deficits to GDP, adopting a Super PAYGO rule to require any new costs to be paid for twice over, beginning to address the long-term solvency of our imperiled trust funds, and putting in place a fiscal commission to develop a bipartisan debt deal.
And finally, we should adopt a Break Glass plan in case we have an emergency before our lawmakers put the needed changes in place.
You have to go all the way back to President Clinton and the Republican congress in 1997, the Lewinski period, to find an enacted budget without continuing resolutions. We are coming up on 30 years since there was any serious thought given to scaling back spending from prior decisions.
It is NOT a taxing issue, no matter how much D’s lie about that – from President Bush II, idiot ass Trump 1 and idiot ass Trump 2. 25 years ago, our last balanced budget, we had federal spending of $2 Trillion and revenues of $2 Trillion. Today, revenues are approaching $5.6 Trillion and spending is approaching $7.5 trillion – for an estimated 2026 annual deficit of $1.9 Trillion!
How did it accelerate from 2000, our last balanced budget?
Start with President Bush II and Medicare Part D – a new entitlement, adding $10+ Trillion to our long term debt, without any dedicated new funding. Why, buying the votes of seniors in his 2004 reelection bid. D’s liked spending too, and would have actually spent MORE on Medicare Rx.
Continue with President Obama, who once criticized President Bush II as “unpatriotic” for adding ~$5 Trillion during his tenure, who hyped up spending by adding new entitlements in Medicaid and taxpayer subsidized exchange coverage, without any significant new revenue. While Health Reform had yet to be fully implemented when President Obama left office, during his 8 years, we added $10 Trillion in debt, and racheted up spending. Since Health Reform, 3/23/10, we have added $29+ Trillion to our debt. Here, not one Republican has ever voted in favor of Health Reform, and, in the Senate, Health Reform remained the law of the land only because Senator McCain voted against whatever “repeal and replace” might have been.
Trump 1, Biden, Trump 2 haven’t changed the status quo. And, Biden added significant new spending as COVID spending slowed. So, hyper spending far in excess of revenues continues today.
Who is most at risk? People who have accumulated significant savings, because, the government keeps printing new money, which will debase the value of the $1 … they call it inflation.
Few of the people reading this note were adults in the 1970’s – the last time our idiot politicians triggered double digit inflation … when every dollar earned bought less.
And, that says nothing about the looming shortfalls in funding for Social Security and Medicare.
with a party made up of Socialists the good ideas of the author don’t stand much of a chance–look at the fiscal condition of the states and ask yourself who has managed their resources more responsibly–a party that wants to grow government will certainly not want to see shrinkage.
good article–good ideas–it will take a crisis to get anything done.
You can rest assured that none of the solutions are palatable to the political class and the debt will continue onward and upward. How it ultimately plays out, I don’t know.
QUINNSCOMMENTARY 
How did we get here? Politicians buying votes.
You have to go all the way back to President Clinton and the Republican congress in 1997, the Lewinski period, to find an enacted budget without continuing resolutions. We are coming up on 30 years since there was any serious thought given to scaling back spending from prior decisions.
It is NOT a taxing issue, no matter how much D’s lie about that – from President Bush II, idiot ass Trump 1 and idiot ass Trump 2. 25 years ago, our last balanced budget, we had federal spending of $2 Trillion and revenues of $2 Trillion. Today, revenues are approaching $5.6 Trillion and spending is approaching $7.5 trillion – for an estimated 2026 annual deficit of $1.9 Trillion!
https://www.cbo.gov/system/files/2026-02/61882-Outlook-2026.pdf
How did it accelerate from 2000, our last balanced budget?
Start with President Bush II and Medicare Part D – a new entitlement, adding $10+ Trillion to our long term debt, without any dedicated new funding. Why, buying the votes of seniors in his 2004 reelection bid. D’s liked spending too, and would have actually spent MORE on Medicare Rx.
Continue with President Obama, who once criticized President Bush II as “unpatriotic” for adding ~$5 Trillion during his tenure, who hyped up spending by adding new entitlements in Medicaid and taxpayer subsidized exchange coverage, without any significant new revenue. While Health Reform had yet to be fully implemented when President Obama left office, during his 8 years, we added $10 Trillion in debt, and racheted up spending. Since Health Reform, 3/23/10, we have added $29+ Trillion to our debt. Here, not one Republican has ever voted in favor of Health Reform, and, in the Senate, Health Reform remained the law of the land only because Senator McCain voted against whatever “repeal and replace” might have been.
Trump 1, Biden, Trump 2 haven’t changed the status quo. And, Biden added significant new spending as COVID spending slowed. So, hyper spending far in excess of revenues continues today.
Who is most at risk? People who have accumulated significant savings, because, the government keeps printing new money, which will debase the value of the $1 … they call it inflation.
Few of the people reading this note were adults in the 1970’s – the last time our idiot politicians triggered double digit inflation … when every dollar earned bought less.
And, that says nothing about the looming shortfalls in funding for Social Security and Medicare.
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Al Lindquist:
with a party made up of Socialists the good ideas of the author don’t stand much of a chance–look at the fiscal condition of the states and ask yourself who has managed their resources more responsibly–a party that wants to grow government will certainly not want to see shrinkage.
good article–good ideas–it will take a crisis to get anything done.
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You can rest assured that none of the solutions are palatable to the political class and the debt will continue onward and upward. How it ultimately plays out, I don’t know.
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