$216,000 per taxpayer.
$81,948 per person.
Welcome to your personal share of our national debt.
And, it’s a debt load that’s growing by the minute.
As lawmakers contemplate more stimulus and the left aims for a greater takeover of the government, Americans will likely see their share of the debt-bill escalate in the coming years.
Talk of reparations, free health care, free college and free monthly basic incomes could send our debt to GDP ratio higher than 100% — on par with the likes of Greece during the midst of the European debt crisis.
Given that the White House and Congress is still in a holding pattern over stimulus, some might ask: do we really need it and, most importantly, can we really afford it?
The short answer is no…and no.
While the case can be made for targeted help to those individuals in need of aid, the overall economy–provided it is allowed to reopen–is already showing signs of recovery. The Atlanta Fed is predicting 33% growth for the third quarter, the highest in history, as the unemployment rate descends to 7.9%, roughly half what many economists assumed it would be at this point in time. Consumer sentiment hit a sixth-month high in September, with the University of Michigan reporting a preliminary reading of 80.4, up from August’s 74.1 reading.
Neither Party Has A Plan
While it can be argued that the left is more willing to spend than the right, it’s clear, neither party has a plan to reduce our debt load. According to a new report from the nonpartisan Committee for a Responsible Budget, we’re heading down a treacherous fiscal path no matter who wins the White House this November. Under the current system, our federal debt is projected to hit a 109 percent debt-to-economy ratio by 2030. Under Trump’s proposed changes, it would hit 125 percent over that same time frame; and, under Biden, it would hit 129 percent. (I suspect with the addition of programs like reparations among other initiatives like a green energy plan, this number could grow even higher.)
But — regardless of who will be worst — the problem, essentially, is there is little impetus for either party to stop spending. We’ve allowed our government to spend so egregiously, and that freedom to spend is derived, in part, from our status as the world’s reserve currency.
But, this modus operandi cannot continue indefinitely. We are saddling the next generation with burdens that are unfair, unnecessary, and unescapable.
Holding Lawmakers Accountable
At some point, both parties need to take responsibility for this mess. It’s up to Americans to hold lawmakers accountable. So, before we keep throwing trillions of dollars that we don’t have at problems of our own making, let’s aim to shore up our balance sheets.