With the election mercifully behind us, Americans should expect those we’ve elected to get to the less-pleasant task of governing responsibly. While hot-button issues such as immigration, inflation and foreign affairs will garner most headlines, a more pressing concern is too often overlooked: America’s staggering national debt.
Growing faster than the economy and projected to reach a record share of gross domestic product (GDP) within three years, our debt is a national crisis. If we continue down the current unsustainable path, we are flirting with catastrophe that would dwarf the Great Recession of 2007-2009.
Our next Congress and President must confront this challenge before it is too late.
The current debt held by the public stands at $28 trillion or 98% of GDP. In three years, that debt will exceed the record of 106% of GDP reach just after World War 2. However, the WW2 debt was incurred for a specific, important purpose: to preserve freedom and democracy. Within a decade, it was sliced in half. Today’s debt is mostly the result of irresponsible budgeting by both parties, years of passing deficit-ridden budgets because our leaders are unwilling to even modestly slow federal spending.
This fiscal negligence and generational theft is the tip of the iceberg. In just a decade, debt held by the public is projected to reach $52 trillion or 122% of GDP. Failing to act will trap future generations in a cycle of high debt and diminished economic opportunity. This moral failure lets us live high on the hog today while passing the buck our children and grandchildren who have no voice in today’s decisions.
National debt always seems like a number so enormous it’s hard to comprehend, but it directly affects us in profound ways. As the debt grows, so do interest payments. In 2024, interest payments on our nation’s debt will exceed spending on Medicare, defense, and all programs earmarked for children. That’s the price we pay today for irresponsible spending of the past. However, each year’s deficit adds to the debt and to the cost of financing it.
Excessive borrowing by government drives up interest rates and makes borrowing more expensive for businesses seeking to grow or families striving to buy a home. This makes everyday goods more expensive and raises borrowing costs for consumer loans. High debt leads to slower economic growth, higher inflation rates and fewer opportunities for businesses and workers to prosper.
Soaring national debt also threatens our national security. The higher our debt, the less financial flexibility we have to respond to emergencies. Whether facing a pandemic, natural disaster or security crisis, a nation severely in debt lacks resources to react swiftly and decisively. Excessive debt also opens the door to potential financial entanglement with foreign leaders who may not share our priorities or interests. Our adversaries shrewdly search for ways to pressure us to compromise American values and sovereignty. Maintaining a strong national defense, stable economy and reliable public safety is essential to our security. A balanced, responsible fiscal approach with broad public acceptance is essential.
Reining in the national debt is not about austerity or simply cutting programs. It is about creating a balanced approach that secures our future. Social Security and Medicare, which together form a substantial portion of the federal budget, are on track to face insolvency within 12 years. Responsible reforms would protect these programs for future generations. Both political parties must find common ground and commit to a long-term strategy that includes prudent spending cuts and targeted investments to strengthen the economy.
Solving our debt crisis will require tough choices and a willingness to look beyond the next election cycle to do what’s right for our country. The next Congress and President-elect Trump must take meaningful steps to address our national debt. Republicans have an opportunity to seek out those Democrats who also realize the danger of habitually kicking the problem past the next election – a practice that must end.
Coloradans can lead in finding solutions. In the House, six of Colorado’s eight returning or incoming Representatives are parents of young children upon whom Congress has piled trillions in debt. That should motivate them to seek common ground on this growing threat to our future.
Curtailing the debt is like planting a tree. The best time to do it was ten years ago. The next-best time is now.