📈👹You know that looming $32 TRILLION monster called the national debt? Very few serious people disagree that SOMEthing needs to be done in the worst way…but it’s hard to get agreement on what!
Well, there’s a new effort to tame that beast, and it’s making some waves in Washington. What gets cut, what’s included, and how likely is this to actually happen?
Here are Five Fast Facts on the latest plan to reduce the national debt:
- 📝 The Bill - The new bill – called the “Limit, Save, Grow Act” – just passed the House. It gives another debt ceiling increase in exchange for a reduction in the deficit by $4.8 trillion over the next decade by reducing spending, rolling back fed handouts, trimming the recent IRS spending, putting requirements on welfare benefits, and more. Reduce government? Can we even do that??
- 👍 Good Idea? - Supporters say we can’t wait any longer to take action on the debt, and point to the government's out-of-control spending in recent years as an indication that too few are being serious about debt right now. Even if it’s just a tactic to force the discussion through the debt ceiling negotiation, you have to break a few eggs to make an omelet, you know?
- 👎 Naysayers Abound!!! - Opponents say it’s poor form to “hold the debt ceiling hostage in exchange for concessions”, and that this will mean some social programs will get cut (though we don’t know which ones). They also argue that it’s bad policy to reduce the IRS expansion and other spending on things like climate change or student loan debt cancellation. The government isn’t a money-printing machine for nothing, right?
- 🚫 The Reality, Part 1 - This bill has passed the House, but it is almost certainly not going to pass the Senate. Even if it does, the White House has already said it’ll veto. So, while it’s not going to become law, it does at least force the discussion and shine a light on an ever-growing problem. Maybe a small nightlight, but at least it’s a light.
- 📈 The Reality, Part 2 - The root problem is the rampant spending in recent years. In 2007, the national debt was 35% of GDP; now, it is 107% and getting worse. It cannot continue. It will get notably worse if the US loses its world reserve currency status. Would this qualify as a crisis…?
🔥Bottom line: The first thing to realize is that this is how democracy works! We propose, we debate, we compromise. It’s worked for a couple hundred years, and it’ll keep working as long as we keep doing it. Maybe this particular plan was a stunt, maybe it wasn’t. The point is, we need to FIX THIS SOON. In our opinion, anything that gets a real conversation going and drives a real solution is a good thing!
What do you think should be done about this?
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