The U.S. just added $215.65 billion to the national debt in a span of only 30 days.
According to new data from the U.S. Treasury, the national debt rose from $34,534,845,450,747 on May 15th to $34,750,498,829,987 on June 15th.
As of last month, the interest being paid on the debt already exceeded the amount spent on defense, medicare and Medicaid, and is also greater than what was 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 of the White House’s Office of Management and Budget, 2019-20, says that America is “on the brink of a fiscal abyss.”
“Such figures are not just numbers but represent a looming burden that future generations will bear — a burden that transcends mere fiscal policy and ventures into the realm of ethical responsibility. The gravity of this debt is exacerbated by the interest payments it necessitates, which have soared to over $1 trillion annually, surpassing what the country spends on national defense.
This situation illustrates a troubling scenario where the government, to manage its debt, resorts to issuing more debt, a practice unsustainable by any standard measure of sound budgeting. The economic repercussions of this cycle of debt are profound, leading to higher interest rates, likely increased inflation, and a misallocation of resources that stifles productive private sector activity.”
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 off their benefits as the programs go bankrupt.
Referencing Rahm Emanuel, former chief of staff to President Barack Obama, Ginn urges that the crisis not “go to waste.”
“As we face these fiscal upheavals, the discretionary spending caps and the debt ceiling, due to expire in 2025, add complexity to an already challenging budgetary environment. The US risks a severe budgetary crisis without thoughtful reform, particularly in the so-called “entitlement programs” like Social Security and Medicare, which consume a substantial portion of the federal budget. These areas must be addressed because both will be essentially bankrupt over the next decade, and millions of recipients will face substantial cuts in benefits.
Given all these challenges, fiscal and monetary rules are paramount.”
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