11/16/2023 | Press release | Distributed by Public on 11/16/2023 11:41
The U.S. federal government's massive spending binge is unsustainable, and American families will be left to pay the tab. Americans are now saddled with a $33.7 trillion-dollar debt in the face of rising interest costs and unabated government spending.
The Wall Street Journal sounded the alarm on how countries are struggling to keep up with steep debt servicing costs and why U.S. debt sets our fiscal challenges apart from the rest of the world.
Word on the Street Via Wall Street Journal:
While many of our enemies and adversaries struggle with debt servicing costs of their own, the United States is projected to account for one third of all government debt interest paid in 2023 - far and away the largest sum shouldered by any country in the world today.
Interest rates are currently at a sixteen-year high, and costs associated with servicing the debt are at record-breaking levels. Rising rates and higher costs on the horizon jeopardize U.S. financial stability at home as well as our fiscal viability and competitiveness on the world stage.
For instance, last week, Moody's Investors Service, one of the three major credit rating agencies, lowered its fiscal outlook for the United States government from stable to negative, citing Washington's inability to address its fiscal shortfall as a reason for the downgrade:
"In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody's expects that the U.S.' fiscal deficits will remain very large, significantly weakening debt affordability."
Earlier this year, Fitch Ratings, another major credit agency, downgraded its U.S. credit rating from AAA to AA+, also citing fiscal mismanagement and other debt-related catalysts contributing to the "expected fiscal deterioration" of the United States.
Agencies and experts alike are sounding the alarm that the United States is wholly unprepared for the recent rise in interest rates, let alone a return to historic interest rate levels.
Over the last 50 years, the average rate was 5.6 percent and reached its peak of 10.8 percentin 1982. That's five times higher than 2.1 percent, the average rate we've seen in the last ten years.
What would it look like for next year's budget deficit if the interest we paid on the debt were to increase to what we've seen in the past?
Check out the following scenarios below.
The Bottom Line:
The U.S. spends more on interest costs than any country in the world-further contributing billions of dollars to our ever-increasing, $33 trillion dollar debt crisis.
Historic rate hikes, and their subsequent payments, have resulted in the federal government adding over $700 billion more to our nation's tab in the last two months alone.
President Biden and Congressional Democrats' reckless tax and spending spree created, and continues to exacerbate, America's fiscal demise. Devoting taxpayer funds to liberal, special interest tax benefits-coupled with Biden's unilateral, executive spending-only inflames our nation's precarious economic outlook by hindering America's ability to effectively compete on the global marketplace.
To best compete with our foreign adversaries, the federal government must devote its limited resources to:
Click HERE to read more about the House Budget Committee's FY24-FY33 Budget Resolution.