The US Treasury is now allowing donations via Venmo and PayPal as a way for individuals to contribute towards alleviating the national debt, currently standing at an astounding $36.7 trillion.
To make a donation, one can visit the “Gifts to Reduce Public Debt” section on Pay.gov. This update was highlighted by NPR’s Jack Corbett.
This new payment option arrives amidst a growing public concern about the nation’s escalating debt, which has significantly increased from $19.59 trillion in 2010—an 87% rise, according to the Treasury Department.
Interestingly, this donation initiative has been operational since 1996, with only $67.3 million collected over the years—a drop in the bucket compared to the federal debt.
Critics are understandably skeptical about how much individual donations can really impact the national debt.
Samson Mow, who leads Bitcoin company Jan3, has even offered an unconventional alternative by encouraging people to “Send Bitcoin to burn address,” as he compares his efforts to the donation program.
The Congressional Budget Office has also been vocal, warning that a recently passed law could add an additional $3.4 trillion to the debt over the next ten years. This law ignited some heated discussions between political figures, including a notable exchange between former President Trump and Tesla’s CEO, Elon Musk, who criticized the bill for raising the debt ceiling by $5 trillion.
Nonetheless, despite the Treasury’s push for donations, the size of the debt raises serious questions about the sustainability of US fiscal policies and the actual impact of such donations.
Moreover, Ray Dalio, founder of Bridgewater Associates, has sounded the alarm, suggesting that the country is at risk of a financial crisis if urgent policy changes are not implemented.
He illustrated his concerns by likening the increasing debt burden to “artery plaque,” which he argues will significantly diminish purchasing power in the long run.
“We are spending 40% more than we’re bringing in,” he points out. “We’re inching closer to a point where borrowing is primarily for paying interest on existing debt. This situation resembles a classic debt spiral.”
Dalio believes the US is nearing a critical juncture where debt and interest payments could severely limit government spending on essential services.
He has urged lawmakers to lower the fiscal deficit from around 7% of GDP to 3%, suggesting that a combination of cuts in spending and tax hikes could make this possible.
Dalio also raised concerns about declining investor confidence, evidenced by fewer bond sales, a stronger dollar, and rising prices for gold and stocks.
He states, “If the fiscal deficit isn’t pinned down to about 3% of GDP, supply will likely outstrip demand for debt,” warning that the costs of servicing this debt will be detrimental to the government’s financial flexibility.
While he thinks an immediate crisis is unlikely, he estimates that without action, there’s more than a 50% chance of experiencing financial turmoil due to a swift loss of confidence.
Dalio has called for bipartisan cooperation, emphasizing that taking proactive measures is far less costly and painful than waiting for a crisis point to occur.
He continues to advocate for a balanced, practical approach and a collective effort to stabilize the fiscal situation before it spirals out of control.
The post has reached out to both the White House and the Treasury Department for comments.
