The US just added $215.65 billion to the national debt in just 30 days.
According to new data from the US Treasury, the national debt rose from $34,534,845,450,747 on May 15 to $34,750,498,829,987 on June 15.
As of last month, the interest paid on the debt has already exceeded the amount spent on defense, Medicare and Medicaid, and is also more than what is spent on veterans, education and transportation combined.
In a new op-ed for the American Institute for Economic Research, Vance Ginn, former associate director for economic policy at the White House Office of Management and Budget, 2019-2020, says America is “on the brink of a fiscal cliff. “
“Such numbers are not just numbers, but represent an imminent burden that will be borne by future generations – a burden that transcends mere fiscal policy and enters the realm of ethical responsibility. The importance of this debt is exacerbated by the interest payments it requires, which have grown to over $1 trillion a year, exceeding what the country spends on national defense.
This situation illustrates a disturbing scenario where the government, in order to manage its debt, resorts to issuing more debt, a practice unsustainable by any standard measure of sound budgeting. The economic consequences of this debt cycle are profound, leading to higher interest rates, possible increases in inflation, and a misallocation of resources that stifles the productive activity of the private sector.”
Not only will it be difficult to avoid raising taxes on the middle class, but Ginn warns that over the next ten years, millions of Americans will likely be forced to give up their benefits after the programs go bankrupt.
Referring to Rahm Emanuel, President Barack Obama’s former chief of staff, Ginn urges that the crisis not “go to waste.”
“As we face this fiscal turmoil, the discretionary spending limits and debt ceiling, which will expire in 2025, add complexity to an already challenging budget environment. The US risks a severe budget crisis without thoughtful reforms, especially in so-called “entitlement programs” like Social Security and Medicare, which consume a significant portion of the federal budget. These areas must be addressed because both will essentially go bankrupt over the next decade and millions of beneficiaries will face significant benefit cuts.
Given all these challenges, fiscal and monetary rules are paramount.”
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