Kevin Price
How bad is the national debt?
FacebookTwitter
By Kevin Price
August 12, 2010

We have known for years that our debts and deficits have been out of hand, but the Congressional Budget Office (CBO) is painting a picture that is almost sci-fi in its proportions. It is the kind of picture that we would assume would come from the Third World or, at least, from Greece or Spain in the EU.

The founders of this republic designed a uniquely American political model that promised fiscal integrity. Simply put, the federal government was limited to 17 specific powers, none of which would cause the kind of financial strain our country faces today. Meanwhile, all other powers were left to the states, but the inability of those governments to print money made them fiscally healthy and naturally small. Because of this, it took almost 200 years for the federal debt to reach $1 trillion. Many found that alarming at the time, but since then we have arrived to the point that we add a $1 trillion to the debt every year.

The CBO is now arguing that the US is facing a crushing debt and this nation is being forced into the position of having to dramatically cut social spending in order to stay afloat. Other findings include that:

    Federal spending will grow to 26 percent of gross domestic product (GDP) within the next ten years and reach highs of up to 35 percent by 2035.

    Take growing health care costs and add an aging population and you have a significant increase in federal spending and the national debt that will grow worse unless there are serious policy changes.

    The national debt is projected to grow as high as 87 percent of GDP in the next decade. To make matters worse, it will reach 109 percent by 2025 and could peak at 185 percent by 2035.

    The CBO politely calls the long-term outlook of the budget as "daunting," and argues that growing costs will limit the choices policy makers have and force draconian cuts in spending.

There are huge debates on all sides of the political spectrum on how spending has grown out of control The political left argues that "expansionary" military policies have led to a costly "military-industrial complex" that has put us in this dire situation. The political right argues that it is the outrageous growth in domestic spending (which is more than 3 to 1 to defense spending) that has caused our financial crisis. Bottom line, our financial crisis is linked to the simple fact that our government seems to no longer be bound by the rule of law. Without Constitutional restraint, there is no fiscal restraint. Until the former is addressed, we can expect our financial situation to only get worse.

© Kevin Price

 

The views expressed by RenewAmerica columnists are their own and do not necessarily reflect the position of RenewAmerica or its affiliates.
(See RenewAmerica's publishing standards.)

Click to enlarge

Kevin Price

Kevin Price is Publisher and Editor in Chief of www.USDailyReview.com

His background is eclectic and includes years of experience in both business and public policy, as well as two decades of experience in broadcast journalism. He was an aide to U.S. Senator Gordon Humphrey (R-NH) and later went on to work in policy areas with some of the nation's leading think tanks including the National Center for Public Policy Research and was part of the Heritage Foundation's Annual Guide to Public Policy Experts... (more)

Subscribe

Receive future articles by Kevin Price: Click here

More by this author

 

Stephen Stone
The most egregious lies Evan McMullin and the media have told about Sen. Mike Lee

Siena Hoefling
Protect the Children: Update with VIDEO

Stephen Stone
Flashback: Dems' fake claim that Trump and Utah congressional hopeful Burgess Owens want 'renewed nuclear testing' blows up when examined

Jerry Newcombe
Church should be about worship, not entertainment

Laurie Roth
Trump, the truth, and America will prevail in spite of leftist evil plans

Cliff Kincaid
Terrorist attack in Baltimore

Tom DeWeese
DOJ ignores 2nd Amendment

Linda Goudsmit
CHAPTER 11: Critical Race Theory: A species of the ideological thought genus Marxism

Pete Riehm
They have tried everything to destroy Trump, but assassination

Tom DeWeese
When your red state governor dresses in blue

Rev. Mark H. Creech
Revelation Chapter 22: Eternal recompense

Tom DeWeese
YIMBYs, workforce housing, and community land trusts: All means to an end to private property

Jerry Newcombe
The vice president visits an abortion clinic—and the people yawn?

Pete Riehm
Like our Commander-in-Chief, America is clueless, feckless, and powerless

Selwyn Duke
Did anti-white, DEI bias steal a state final spot from a white basketball team?
  More columns

Cartoons


Click for full cartoon
More cartoons

Columnists

Matt C. Abbott
Chris Adamo
Russ J. Alan
Bonnie Alba
Chuck Baldwin
Kevin J. Banet
J. Matt Barber
Fr. Tom Bartolomeo
. . .
[See more]

Sister sites