What you are about to read may seem incomprehensible, but it is true: the U.S. government has been borrowing approximately $90,000 per second over the course of a year.
In total, the federal government will borrow between $2.2 trillion and $2.5 trillion this year. Pushing the national debt to $35 trillion.
As Vice Chairman of the Joint Economic Committee (JEC), it is my moral obligation to tell the truth about the math and help the American people understand the magnitude of the policy decisions ahead.
Every year, JEC: Council of Economic Advisers’ Economic Report to the President. we have chosen to focus This year’s Joint Economic Report examines America’s fiscal position and proposes a framework of actionable solutions to ensure the nation’s future financial stability and prosperity.
It is tempting to pin the blame for the current situation solely on President Biden, and his economic record certainly speaks for itself. Over the past three and a half years, we have Record Government Spendingthe explosion of national debt and Inflation not seen in the last 40 yearsAmericans are suffering economically under Biden and his record on the economy can be summed up in one word: failure.
But there is plenty to blame. The federal government has been on a dangerous fiscal course for much longer than the past three and a half years. We borrowed and spent too much for decades. Our failure to get our finances in order and to exercise even the semblance of fiscal restraint has led to the situation we find ourselves in today.
The question that really needs answering is, what are we going to do about it?
Will we turn a blind eye to reality and continue with our reckless spending and borrowing policies?
Or will we undertake the difficult task of implementing workable solutions so that our children, grandchildren and future generations can have the same economic opportunities that we as Americans have enjoyed?
Here are three areas where we could start to put the United States on stronger fiscal footing.
The first one The country’s declining birth ratewhich coincides with a decline in prime-age workers. Together, these are leading to a shrinking labor force. Why is this important? A shrinking labor force necessarily leads to slower long-term economic growth, which reduces options for financing mandatory spending programs funded by payroll taxes.
To reverse these trends, Congress should focus on creating policies that improve demographic outcomes by removing barriers to family formation and reconnecting prime-age generations to the American workforce.
The second area the report focuses on is the issue of obesity. The report reveals the harsh reality that obesity, a major driver of healthcare spending, will cost Americans up to $9.1 trillion over the next decade. With obesity rates soaring, the report predicts that the economic impact of obesity will be even greater than predicted last year.
Even the most conservative estimates More than half of the U.S. adult population will be obese by 2032Ultimately, GDP is expected to decline by $10.9 trillion to $11.9 trillion over the next decade as the labor supply declines.
I have long argued that one of the most moral things we can do as a society is to curb obesity through medical innovation. I believe that by focusing on making Americans healthier, we can significantly improve their quality of life and help solve our nation’s fiscal problems.
Finally, our report explains that artificial intelligence (AI) has the potential to significantly grow the economy and make government more efficient. AI is one of the most transformative technological innovations of our generation. It is essential that Congress ensure that excessive regulation does not stifle investment and innovation in the AI space. If this can be achieved, we believe AI innovations could help stabilize the debt-to-GDP ratio and reshape the nation’s fiscal trajectory.
Congress can no longer ignore the nation’s debt dependence. Doing so would leave the federal government at the whims of the bond market, and no one, Republican or Democrat, wants that.
There is hope: American innovation and ingenuity can help us weather fiscal headwinds and deliver a brighter, more prosperous future for generations to come.
David Schweikart represents Arizona’s 1st District and is vice chair of the Joint Economic Committee.
