Our debt is accelerating and exceeds the size of our economy. Both political parties are at fault. There will be disastrous consequences.
The pandemic clearly added to our debt. Our labor force participation rate is plummeting and long-term economic growth is questionable. Will millions of legal and illegal immigrants entering the United States rebuild our workforce, grow our economy and tax base or will political agenda programs expand debt to unsustainable levels?
Increased debt slows the growth of our economic output. Federal interest payments consume $300B of our taxes and it’s projected to grow faster as debt and interest rates increase.
Democrats pontificate more spending will make our economy stronger, people more prosperous and generate more tax money that exceeds debt-interest payments, concluding more spending will cost nothing. Try that rationale with your home budget.
Politicians need to recognize our budget exposure. New or expanding program spending should be accompanied by measurable program reforms. Failure to show efficiencies should cancel such programs.
These are tough choices. Only restraint will restore fiscal discipline but that requires leadership. If elected officials rise to the challenge, it can fuel a strong recovery leading to a stronger economy that will benefit generations to come.