If we do nothing, “the deficit amounts to 5.3 percent of gross domestic product (GDP) in 2023, swells to 6.1 percent of GDP in 2024 and 2025, and then declines in the two years that follow. After 2027, deficits increase again, reaching 6.9 percent of GDP in 2033.” It becomes problematic around 2050, when net interest starts approaching 8% of GDP, but that is again if we do nothing (or blow the purse).
I'm often told we can afford all this debt and war but then I take note of homeless veterans and I am told we can't afford to house them.
We have different priorities.
It's Christmas, instead of consuming 5 plus percent of a single mothers efforts over the year that instead couldve went under the tree, did we ask her what she could afford?
We had an active “conservative” president refer to wounded veterans as losers and it hasn’t really mattered. So it’s clearly not on top of the political mindset of either side.
The debt that is incurring interest was an enormous factor in growing americas wealth in the past, and continues to be going forward. Your anecdote about a single mom conveniently ignores that.
> The debt that is incurring interest was an enormous factor in growing americas wealth in the past
Most of the debt is very recent. Nothing to do with decades of growth.
Paying interest on 5% of gross product is very anti-growth.
Borrowing to grow is legitimate. But the idea that spending decisions by the US government over the last couple decades were sober financial bets on returns is fantastical.
If that were the case the debt would be getting paid down, with a trajectory to surpluses being the return, not growing.
There is no reason to assert the debt should be getting paid down if it’s still more logical to borrow and grow.
Especially when it’s USD denominated debts and the dollar is the most desired currency.
The US is in a ridiculously privileged position. We’re riding the gravy train of natural resources and no bad neighbors for the foreseeable future. Quibbling about our debt is dumb.
There just isn't a pattern of the US carefully spending its money in a virtuous borrow and grow cycle. Recently, anyway.
But you are right, the US is like a partner in a common enterprise (the global economy demarcated in dollars), which has the special right to keep giving itself more shares (dollars).
If they were also spending frugally, and wisely, they could flip to a government funds surplus "problem" pretty quickly.
Here you go: https://www.cbo.gov/publication/58946.
If we do nothing, “the deficit amounts to 5.3 percent of gross domestic product (GDP) in 2023, swells to 6.1 percent of GDP in 2024 and 2025, and then declines in the two years that follow. After 2027, deficits increase again, reaching 6.9 percent of GDP in 2033.” It becomes problematic around 2050, when net interest starts approaching 8% of GDP, but that is again if we do nothing (or blow the purse).