The Unstoppable Growth of US National Debt: Can Anyone Stop It?

The persistent growth of the US national debt has been a concerning trend for decades. Each year, the government deficit widens, putting pressure on fiscal sustainability. The logical solution, many argue, is to increase taxes. With US tax rates currently lower than in most developed countries, there is certainly room for a tax hike that could help balance the budget. However, the harsh reality is that the debt doesn't necessarily need to be paid down immediately. By simply balancing the budget annually, the debt may naturally inflate away over time.

While many countries manage to balance their budgets without too much difficulty, the United States faces a unique challenge. Public resistance to higher taxes is strong, fueled by a blind belief in market economics and the trickle-down effect. The idea that tax cuts pay for themselves is a persistent misconception that has driven flawed fiscal policies in the past, including the disastrous effects of the 2001 tax cuts under the Bush administration.

It's essential to understand the critical role taxes play in government finance. Taxpayers are currently paying off the debt, but Congress continues to increase it, a cycle that has persisted for too long. Over time, this leads to an unsustainable situation that can only be resolved with significant changes in fiscal policy.

A Historical Perspective on US Debt

Official federal government data indicates that from 1947 through 2000, the US federal debt increased by a staggering 3.0 trillion dollars. This is a remarkable figure during a 53-year period and happened without the dramatic increases seen in more recent years.

During the George W. Bush presidency, from 2001 to 2008, the national debt grew by 2.0 trillion dollars. The next period, under President Obama from 2009 to 2016, saw the debt rise by an astounding 7.3 trillion dollars. This 7.3 trillion dollar increase in just seven years is significantly more than the 5.0 trillion dollar increase from the end of World War II to 2009, which took 62 years.

Nicely spotlighting the contrast, the debt increase during the Obama administration was nearly four times that of the entire period from the end of World War II to 2009. This dramatic increase is a stark reminder of how quickly the debt can grow when fiscal reforms are delayed.

Failed Fiscal Policies and Political Gridlock

During George W. Bush's tenure, tax rates were reduced in an effort to increase federal revenue and reduce debt. However, these efforts were short-lived. After the Democrats flipped the Congressional majority, giving them control, the September 11 attacks occurred, redirecting the focus to other priorities. As a result, Bush was unable to push through further debt reduction initiatives. Instead, the Democrats increased government spending, which only added to the deficit.

Fast forward to the Trump administration. Although Trump managed to cut tax rates, leading to a temporary boost in government revenue, he also increased spending. The result is that federal revenue is growing, but spending is rising even faster. Democrats, despite proposing fewer government jobs than available, continue to resist any measures to reduce government spending.

It's clear that the United States needs a fundamental shift in how it approaches its fiscal policy. Cutting the federal government to a more manageable size, where fewer jobs are needed within government and more exist in the private sector, is imperative. The Democrats' historical record of consistently spending every penny they can get their hands on, regardless of the national debt, is a sobering reminder of the need for change.

Conclusion

The US national debt is a complex issue with no easy solution. While increasing taxes may be the most immediate fix, it also requires comprehensive fiscal reforms and a shift in public and political perceptions. Reducing government spending and streamlining government operations can play a crucial role in addressing the long-term sustainability of the national debt.