I chuckled at a recent Cincinnati Enquirer article from the Associated Press which read “McCarthy Struggles for Debt Bill Votes”. The entire article was negative about any attempt at all to reduce the deficit or to try and hold the federal government accountable for its spending. The United States is on a trajectory of doom if we don’t make a change now. McCarthy’s suggested modest cap on future spending increases at 1% a year for the next decade was the first attempt at common sense with the budget I’ve seen for years.
Our current federal debt is $31.4 trillion and several experts like Statista tell us if we don’t make a major change fast that our federal debt could top $51.9 trillion 10 years from now. Our debt to GDP ratio continues to climb and is now 129% of our Gross Domestic Product and is approaching the high rates of Japan and Europe. The problem with our continued addiction to spending is that the debt will continue to dampen economic activity as higher rates of interest expense take up more and more of our discretionary spending. By 2025, US Interest Payments on the National Debt will pass the Defense Budget spending.
About five years back many people started to speak about “A Penny Plan” where a 1 Cent deduction in spending would balance the budget over a 5-10 year period. Two years ago this figure became a 2 Cent deduction in spending, now it would take a deduction of 3 Cents or more. Where is the National Media’s voice in holding the government accountable in a way that they hold State and Local Governments to their budgets? Where is the cry to right a ship that is about to sink?
Dan Regenold’s opinion piece titled It Will Take A Transformational Leader To Keep U.S. From Becoming Next Greece was published in the print edition of