Despite being one of the least spoken about subjects during this week’s Republican National Convention, the national debt is about to reach a dire milestone. While running for office around the nation, President Joe Biden has also not made much mention of it. The most recent figures from the Treasury Department show that as of Tuesday, the total amount of outstanding federal debt was $34.9 trillion ($34,940,154,000,000 to be exact). At present, the debt burden surpasses 120% of GDP. Spending on defense was out of the question earlier this year due to interest payments alone.
The psychologically important $35 trillion milestone will likely be crossed sometime between this week’s Republican National Convention and when the Democrats gather in a few weeks’ time in Chicago, assuming debt continues to grow by an average of about $8 billion a day. All told, the debt could represent 166% of America’s GDP by 2054. Yet a Yahoo Finance review of this week’s flood of political commentary—both Republicans in Milwaukee and Biden on the campaign trail—underline a political reality of this election season: This historic debt is simply not a front-burner issue.
“We stand for fiscal sanity, for low taxes, and for reduced debt,” said Florida Gov. Ron DeSantis as he endorsed Republican nominee Donald Trump on Tuesday night. What the line contained in snappiness it perhaps lacked in internal consistency. Lowering taxes is likely to increase deficits and debt. “Our government sold us a false bill of goods with the Iraq war and the 2008 financial crisis loading up our national debt that falls on our generation’s shoulders,” added former presidential candidate Vivek Ramaswamy during his speech. He overlooked how 2017 tax cuts and other policies enacted by Trump as president have contributed mightily to the current total.
Throughout Trump’s presidency, the national debt increased by around $8 trillion. Biden is expected to supervise a comparable increase. During the course of the last 7.5 years, the national debt has increased by approximately 70%, driven by both these decades-old liabilities and a wave of new spending.
Former President Donald Trump is displayed on a screen during the second day of the 2024 Republican National Convention in Milwaukee. All told, the vast majority of the major convention speeches so far this week haven’t brought up debt or deficits at all, according to a review of transcripts and videos. The Republican platform offers promises to cut “wasteful government spending” but doesn’t discuss debt or deficits directly. It’s a notable shift for the Republicans who in years past campaigned on ideas like a balanced budget amendment and fielded major candidates who rose through the ranks as members of the deficit hawk wing of the party.
The rising national debt poses a serious long-term economic challenge. As interest payments consume a larger portion of the federal budget, less funding will be available for other critical needs, such as infrastructure, education, and healthcare. Moreover, high levels of debt can lead to higher interest rates, which could slow economic growth and increase the cost of borrowing for businesses and consumers. Despite these significant implications, the issue of national debt remains sidelined in the current political discourse. This lack of attention raises questions about how the next administration, whether led by Trump or Biden, will address the growing debt crisis.
In conclusion, while the national debt is approaching a historic milestone, it remains a low-priority issue in the current political landscape. The focus on other topics during the Republican National Convention and on the campaign trail underscores a broader political reality: addressing the national debt is not at the forefront of either party’s agenda at this critical juncture. As the debt continues to grow, it will be essential for policymakers to confront this issue to ensure the long-term economic stability of the United States.
Historically, Republicans have often campaigned on a platform of fiscal conservatism, emphasizing the importance of reducing government spending and balancing the federal budget. This shift away from these principles suggests a broader change in the party’s priorities and strategies. The emphasis on tax cuts and economic growth, while potentially beneficial in the short term, may exacerbate the long-term debt problem if not accompanied by significant spending cuts or increased revenue from other sources.
For Democrats, the challenge lies in balancing their goals of expanding social programs and addressing income inequality with the need to manage the national debt responsibly. The Biden administration has pursued significant spending initiatives, including infrastructure investments and social welfare programs, which, while potentially beneficial for economic growth and social equity, also contribute to the rising debt levels.
The lack of focus on the national debt by both parties suggests a broader trend in American politics where immediate, tangible benefits are often prioritized over long-term fiscal responsibility. This trend is driven by the political reality that voters are more likely to respond to policies that provide immediate economic relief or benefits, such as tax cuts or increased social spending, rather than policies aimed at reducing the national debt, which may require austerity measures or tax increases.
More pressing issues including inflation, the economy’s recovery from the pandemic, and social issues might take precedence over the national debt crisis in light of the impending elections. But it’s impossible to overlook the long-term effects of growing debt. The federal government will come under more and more pressure to control interest payments and come up with long-term solutions to pay down its debt without jeopardizing the stability of the economy or vital services.
The path forward will require a balanced approach that considers both the need for economic growth and the importance of fiscal responsibility. This may involve difficult choices and trade-offs, including potential reforms to entitlement programs, changes to the tax code, and strategic investments in areas that can drive long-term economic growth. By addressing the national debt proactively, policymakers can help ensure a stable and prosperous future for the United States.
In the end, party collaboration and a readiness to participate in challenging but essential policy conversations will be needed to meet the challenge of controlling the national debt. It will be crucial for leaders of both parties to prioritize fiscal discipline as the national debt continues to climb and to collaborate in creating long-term solutions that solve the country’s long-term economic issues.
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