America's Political Leaders: Ignoring Exploding Debt for Short-Term Political Gain

Despite a soaring national debt of $35 trillion, political leaders continue to propose and pass increased spending, ignoring the long-term consequences for American taxpayers. This reckless spending spree is exacerbated by emergency pandemic spending, with interest on the debt now exceeding federal spending on children and defense. Experts have consistently warned of an inevitable financial crisis, but proponents of modern monetary theory dismiss such concerns.

America's political leaders are facing a spending crisis, but they are choosing to ignore it. Despite a national debt of $35 trillion, which amounts to over $100,000 for each American, both Republicans and Democrats demand increased spending. Under rosy assumptions, over $20 trillion in debt is projected to be added over the next decade.

America's Political Leaders: Ignoring Exploding Debt for Short-Term Political Gain

This spending problem is not solely due to tax cuts, as data shows that revenue has remained relatively stable. The real culprit is government spending, which has increased significantly above prior levels. Much of this debt is baked into the budgetary cake, with experts warning about rising costs due to the retirement of the Baby Boom generation.

Soaring health spending and rising Social Security payouts are major contributors to the problem. Emergency spending during the pandemic has added over $5 trillion to the debt, and now annual interest payments on the debt exceed all federal spending on children and defense combined.

America's Political Leaders: Ignoring Exploding Debt for Short-Term Political Gain

Efforts to balance the budget are repeatedly dismissed. Former chairmen of the House Budget Committee have proposed and passed balanced budgets, only to see them overridden by a desire for increased spending. Important commissions have issued detailed recommendations that were largely ignored.

Modern monetary theory (MMT) proponents argue that the government can always print more money, but this has been proven false during the pandemic. Massive federal spending led to significant inflation, with prices growing 20% since the start of the Biden-Harris administration.

America's Political Leaders: Ignoring Exploding Debt for Short-Term Political Gain

The Federal Reserve's response to inflation has resulted in higher interest rates, which have driven up monthly mortgage payments for a median-priced home by over $1,000. Lower-income Americans are disproportionately affected by rising costs and inflation.

Despite expressing concerns about inflation, both presidential tickets propose even bigger deficits. Former President Donald Trump and Vice President Kamala Harris have both proposed tax exemptions and increased child tax credits, which would cost over $1 trillion during the next decade.

However, neither campaign has a plan to cover these increased costs. The Penn Wharton Budget Model estimates that Trump's plans would increase deficits by $4 trillion, while Harris's plans would add $2 trillion. But these estimates do not account for Harris's potential revival of her previous proposals, which included Medicare-for-all and $2,000-per-month stimulus checks.

The reality is that all Americans will pay for this reckless spending, particularly those with modest incomes and younger Americans who will suffer the longest from higher taxes, inflation, and interest rates. We must demand more from our leaders than promises of bigger giveaways, followed by empty handwringing about the soaring debt and financial pain that inevitably result.