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Rising U.S. Debt: What Will Be The End Game?
The more indebted we get, the more we will see poverty, inflation and service decline. The debate is over just how much
America’s economy is by far the world’s biggest. With a projected 2025 GDP of over $30 trillion, we have been better at bringing prosperity to large groups of people than any nation in history. We’re also the most indebted. In absolute terms, the U.S. owes more money than any other nation, and was recently downgraded by Moody’s. While this has led to doomsday scenarios through the years, the U.S. has not collapsed and isn’t likely to. Rather, we are seeing a slow decay in economic dynamism and living standards, as manifested in a weakening currency, higher government costs and worse services. How much the situation can improve depends on how soon – or if– the government stops pretending America is immune to fundamental economic laws
From 2000 to 2024 the national debt climbed from $10 trillion to over $36 trillion.In the last Trump administration alone it grew 39%, erasing any hope that Republicans would be a more responsible party than pro-government Democrats.The growth comes from decades of increased entitlements and higher government spending across the board. Tax cuts combined with high spending indicates politicians don’t see a need for balanced budgets, helping explain why annual deficits now far exceed $1 trillion
Money printing isn’t the only consequence of out-of-control debt. Tax hikes are guaranteed. By one estimate, interest costs will hit $1 trillion a year by 2033. Progressives think taxing the rich is the easy fix, but the top 10% of earners already pay 3/4ths of federal tax revenue,with many of them giving over half their income to federal, state and local governments.The more that politicians try milking that cow, the more capital flight we’re likely see, leaving more of the burden to the other 90%.
By Scott Beyer
