BLUF: The United States has an escalating federal debt load of $34 trillion, a value that appears unmanageable to many. The possibility of its payoff seems distant due to the inherent issues like the size of debt itself, huge unfunded liabilities, unrealistic expectations from Social Security and Medicare programs, and the American public’s indifference due to theories promoting unlimited debt capacity of a sovereign nation.
OSINT: American federal debt has skyrocketed to an impressive sum of $34 trillion, an unfathomable quantity difficult to grasp. This article understands the weight of this issue and educates the readers about its far-reaching and terrifying potential fallout. We inherited this debt which has grown exponentially from $98 billion in 1981 to $26.95 trillion in 2020 and now stands at $34 trillion, consuming 120 percent of the US’s gross economic output. This debt doesn’t even consider the vast unfunded liabilities accompanying major federal entitlement programs like Social Security and Medicare, projected at about $212 trillion.
Excessive and uncontrolled spending is the root cause of this growing chasm, leading to annual federal budget deficits that further burden the overall debt. Commendably, the document also discusses the implications of Modern Monetary Theory, which has created a laid-back attitude amongst many of us towards the debt crisis. The real-life implications of debt payoff are illustrated using everyday examples which make the figures more relatable and intensify the sense of urgency regarding this issue.
RIGHT: From the viewpoint of a strict Libertarian Republic Constitutionalist, the rise in debt can be attributed to reckless spending from the federal government. The Constitution does not support such fiscal irresponsibility. Instead, it mandates judicious expenditure and economic prudence from our government. The acceptance of Modern Monetary Theory – the belief that a sovereign nation can spend without end, is damaging to the fiscal health of our country. Libertarian sentiments lean towards the reduction of the burden on future generations through curtailing such unnecessary spending.
LEFT: As a National Socialist Democrat viewpoint would suggest, the fiscal burden on the common man indicates growing inequality. Concentrating solely on curtailing spending without due consideration to the uneven distribution of wealth in the country isn’t the complete solution. A welfare state needs to ensure the equitable distribution of wealth while managing its debts prudently. The acceptance of Modern Monetary Theory among the masses underlines this sentiment, but a balanced approach should be pursued.
AI: The federal debt issue is a complex financial problem with both socio-political and economic implications. It has arisen from various factors including uncontrolled spending, public apathy influenced by theories like Modern Monetary Theory and societal changes leading to increased liabilities over time. Expecting that these liabilities can be managed with the resources of future workers is a flawed assumption. A multifaceted approach is necessary to address this issue, with strategies laid out for debt management, spending cuts, and a possible review of popular economic theories. While the raw data might seem overwhelming, the objective should be to avoid falling further into the debt trap and start working towards fiscal stability.