Federal debt just broke record $34 trillion.it took the country over 200 years recorded the first $1 trillion in debt, Three months To accumulate the latest trillion dollars.
A new parliamentary spending deal will help stem the bleeding. But more needs to be done. The first step to helping reverse runaway debt is to end the free distribution of taxpayer money to foreign countries through foreign aid grants. record level in recent years.
America's debt is now exceed GDP China, Germany, Japan, India, and the UK combined. President Biden is Add $6 trillion The debt has increased since he took office and increased annual spending. Trillion That's above President Trump's baseline.
And this is just the tip of the debt iceberg.The United States is also facing the next situation. Another $151 trillion Unfunded pension and medical debt. Taking that total into account, the national debt per taxpayer is nearly $1 million.
Things are only going to get worse. The federal budget deficit in 2023 is $1.7 trillion — The highest on record, excluding the coronavirus pandemic of 2020 and 2021, and an outrageous number for an economy operating at full capacity. The deficit in 2024 is Expected to exceed $2 trillion. These deficits are higher than those during the Great Recession, when the unemployment rate was over 9%. Two-and-a-half years.
The effects of this debt burden are even more pronounced in today's world of high interest rates.According to the Congressional Budget Office, the annual interest on the debt is over $1 trillion Over the past decade, debt servicing has become the third largest source of federal spending, behind Social Security and Medicare. The United States currently wastes $2 billion a day on interest payments, which is more than the annual budget of major American cities. such as tampa.
Congress recently announced a spending deal that is a step toward addressing the crisis. Discretionary spending in 2024 is decreased to $1.59 trillionUnder 2023 level. Of particular note is that this agreement confirms new achievements. 10 billion dollars This is due to Democrats' $40 billion expansion of the Internal Revenue Service.
Unfortunately, Congress' next move could undo this small financial victory. The government is working on a $100 billion foreign aid spending deal that includes deployments. Another $61 billion To Ukraine.This brings the total amount spent on Ukraine to Approximately $150 billion.That's all US Department of Transportation annual budget.
In addition to this funding, extensive foreign aid Why is the U.S. giving free taxpayer money to countries like Canada and Mexico, which have far better fiscal conditions than the U.S.?
To get serious about the debt problem, instead of handing out free taxpayer money, long-standing aid to important allies should be turned into interest-bearing loans, and the Trump administration needs to do just that. . was suggestedso the financial situation of the United States will not deteriorate further.
True, this measure will only reduce the amount of debt. But it would symbolize that lawmakers are serious about tackling debt and ending spending that doesn't directly benefit Americans. It's just one of the countless necessary morsels that need to be removed from the national debt sandwich.
The sad reality is that foreign aid is often wasted on corrupt politicians and dictators, who use it to consolidate power and enrich their friends. It rarely reaches real people. And even if they do, they can disrupt the market and worsen the situation for their intended targets. For example, food aid drives down local prices, hurting local farmers and the economy. The CIA even has a term for the unintended consequences of foreign military aid.blowback”
If things continue like this, the United States is at risk of falling into a debt spiral. Congress must act now. Perhaps the only way to truly restore fiscal health and curb bipartisan spending addiction is a balanced budget amendment to the U.S. Constitution. But in the meantime, Congress can begin the long journey of debt reduction by shifting taxpayer-funded foreign aid from grants to interest-bearing loans.
Lee Rizzuto is the former U.S. Consul General to Bermuda and Alfredo Ortiz is the President and CEO of Job Creators Network.
