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America Is Living on Borrowed Money
Key Excerpts from Article on Website of New York Times
Posted: September 3rd, 2023
https://www.nytimes.com/2023/07/05/opinion/debt-crisis.html
Government borrowing and spending are necessary to stimulate the economy during recessions. The United States, however, now borrows heavily during periods of economic growth to meet basic and ongoing obligations. It’s increasingly unsustainable. Over the next decade, the Congressional Budget Office projects that annual federal budget deficits will average around $2 trillion per year, adding to the $25.4 trillion in debt the government already owes to investors. Borrowing is expensive. A mounting share of federal revenue, money that could be used for the benefit of the American people, goes right back out the door in the form of interest payments to investors who purchase government bonds. Rather than collecting taxes from the wealthy, the government is paying the wealthy to borrow their money. By 2029, the government is on pace to spend more each year on interest than on national defense, according to the Congressional Budget Office. By 2033, interest payments will consume an amount equal to 3.6 percent of the nation’s economic output. The debt ceiling is part of the problem. It was never intended to limit the federal debt. It was actually created to facilitate borrowing. During World War I, Congress got tired of authorizing each new round of bonds, so it gave the Treasury permission to borrow up to a specific limit. Its current use ... is even less productive. Larger changes are going to happen only if both political parties are willing participants.
Note: Explore an excellent analysis of the substantial role that the defense budget has in federal government’s spending, which was not mentioned in this New York Times article. For more along these lines, see concise summaries of deeply revealing news articles on government corruption from reliable major media sources.
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