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If neither dominant party represents you, consider the Libertarian Party.
Massive Federal Debt
| A Crisis | The Fix |
146% … a real problem
A $ 34,000,000,000,000 federal debt (Nov '23) is unfathomable. This is insane and criminal.The nation's debt-to-income ratio1 is 146%. Households with this debt-to-income ratio are in serious troble; businesses … are out of business. It is most obvious to any casual observer that this is unsustainable, and more so, dangerous. Yet, this is business as usual for the federal gov't.
Nov '22 was 129%. We are heading in the wrong direction.
Inflation
This highly leveraged condition is inflation (by definition!). Steps taken to improve the value of our money will reduce inflation (again, by definition).The federal gov't can follow The Fix below and take other lesser steps to reduce the devastation caused by inflation.
The FixIt should be obvious that we need to put our federal financial house in order.We should utilize spending cuts to fix our financial morass. We must NOT increase taxes! And then, a plan must be put in place to pay the massive $ 34,000,000,000,000 federal debt. I recommend spending cuts of at least 4% annually until the federal debt has been paid-in-full. These 4% spending cuts this will require a 40-year commitment (approx.) to fully payoff the massive federal debt. Gov't spending has NEVER corrected economic problems. On the contrary, gov't action has caused depressions and then prolonged those depressions.
Federal Shutdown?This seems extreme. I favor a plan …
Balanced Budget and Payment PlanStarting Year 1, difficult decisions about the size, scope, and reach of the federal gov't will have to be made. These annual 4% spending cuts should be across-the-board instead of identifying specific programs/spending for termination; it seems much less partisan. Besides, both dominant parties have created this problem over the decades. Both should feel the pain. |
a swift torrent to stop …
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It will also be necessary to eliminate the "category" of Mandatory Spending. With annual spending cuts, expenditures will in time be less than tax receipts … a balanced budget. At this point budget surpluses can be a applied against the outstanding debt. Once the federal debt reaches target amounts federal income taxes can be reduced. Say, at a federal debt of $ 20,000,000,000,000 federal income tax rates could be reduced. This will slow the payment process but offer taxpayers some relief during the payment period. |
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Footnote: 1 2021 GDP was $ 23,300,000,000,000