As I do here from time to time, I want to talk about the general economic state of the USA. We as a nation are currently in debt to the tune of $30.448 trillion. Despite the fact that the entire budget deficit for FY2022 was supposed to be $1.0 trillion, we have far surpassed that. At the beginning of the fiscal year, we were $28.428 trillion in debt. The beginning of the fiscal year was two trillion dollars ago, and we still have
2 3 months left in the fiscal year. Not to mention that interest rates have skyrocketed.
The interest on our national debt is skyrocketing, and the CBO is underestimating the costs IMO. For the month of May, interest on that debt was nearly $25 billion. Still, we keep borrowing.
We have to. The only way to fix this disaster is to cut everything. The majority of government spending goes to so-called ‘mandatory spending’ and interest on the money that we have already borrowed. Mandatory spending includes entitlements like Medicare, Social Security, VA benefits, etc. which are REQUIRED by law to be paid. Interest on the debt must also be paid. The money that must be paid totals about $5.2 trillion a year (ten years ago, it was $2.5 trillion). You get that? Social Security, interest on the debt, Medicare, and the like already total more than we take in through taxes.
So the only answer to the debt problem is to cut it all by 50 percent: Defense, Social Security, the VA, all of it. The problem is that is not politically possible. Any politician that advocates cutting Social Security in half can measure the remaining time in his career in milliseconds. Same with any other program.
Nope. We are riding this debt train all the way to the bottom.