Authored by Ken Buck via The Epoch Times,
Despite the rhetoric surrounding fiscal responsibility, Washington lawmakers are persisting in accumulating more debt on America’s already overextended credit line.
The U.S. annual deficit has soared to $1.8 trillion in the first 10 months of the current fiscal year. With two more months to go, this year’s deficit is projected to surpass $2 trillion.
In normal times, the U.S. deficit has never exceeded $1.8 trillion in a single year.
Despite a growing economy, low unemployment rates, and no imminent national crisis, why is Washington unable to manage its fiscal affairs? The president of the Committee for a Responsible Federal Budget rightly points out that this situation is “not normal.”
The escalating borrowing costs, a consequence of the country’s mounting national debt (the total accumulation of yearly deficits), are a significant factor. The U.S. Treasury yield has reached a 19-year high this month at 5.34 percent, reflecting the interest rate the government must pay on debt-issued bonds.
As the national debt climbs, creditors are increasingly cautious about the government’s ability to repay its debts, leading them to demand higher returns. Consequently, nearly 20 cents of every tax dollar now goes toward interest payments instead of investing in the nation, surpassing the previous record set in 1991.
However, the core issue lies in Washington’s unchecked spending spree. Democrats advocate for more federal programs, while existing entitlement costs grow, and annual deficits accumulate. Federal spending has risen by 5 percent this year compared to last, while revenue has only grown by 3 percent.
Regrettably, even conservatives have fallen prey to this trend. Despite promises to reduce government waste and maintain low taxes, initiatives like the Big Beautiful Bill by Republicans failed to address the root cause of federal expansion. Without significant entitlement reforms, tax cuts only widen the budget deficit.
The Congressional Budget Office estimates that the Big Beautiful Bill would add $3.4 trillion to the national debt over a decade, reaching as high as $4.5 trillion when considering interest payments.
While Republican tax cuts can stimulate economic growth and bolster the country’s finances, they must be counterbalanced by substantial spending cuts. Focusing on one side of the ledger is akin to damming half a river – it does not rectify deficits.
Bringing annual deficits under control necessitates forward-looking decisions. Concurrently, as the administration seeks a 19 percent increase in discretionary spending – the second-largest rise in at least six decades – lawmakers must confront the nation’s addiction to deficit spending comprehensively.
President Donald Trump’s 2027 budget proposal includes a 10 percent cut in non-defense spending, a commendable step. However, this progress is offset by increased defense spending. While crucial, defense funding must be balanced with substantial spending reductions, including politically sensitive areas like Social Security, Medicare, and Medicaid.
Although historically unpopular, reducing entitlements resonates with voters who grasp the stakes and desire leaders capable of making tough decisions.
More than 80 percent of Americans are increasingly concerned about the national debt, with 85 percent urging Congress and the White House to take decisive action.
Voter awareness stems from the recognition that the country’s debt burden escalates living costs and makes personal borrowing more expensive.
Eliminating annual deficits is feasible and paves the way for reducing the national debt. Achieving this goal demands bold leadership, realistic objectives, and political courage – qualities sorely lacking in present-day Washington. Voters should demand accountability at the ballot box this fall.
The opinions expressed in this article are solely those of the author and do not necessarily represent the views of The Epoch Times or ZeroHedge.