The federal debt of the United States is approximately $29 trillion and is close to $30 trillion per day
For more than half a century, the United States has enjoyed the power of being a global financial superpower and the dollar has been held up as the world’s reserve currency. But reckless government spending and gross mismanagement of the federal debt threaten the reputation of our republic.
Today, the federal debt of the United States is approximately $29 trillion and closes to $30 trillion every day. With interest rates at historic lows, the US pays out about $350 billion each year in interest on our debt. This is $350 billion which provides zero return for taxpayers.
Fast forward to 2031. The federal debt has exceeded $45 trillion and interest rates have returned to the 50-year average of 6.2%. Under this dire but very likely scenario, the annual interest owed on federal loans would increase to $2.8 trillion. This is where things start to settle down.
If we allow our country to get anywhere near this point, we will see a complete meltdown of American financial security and debt. Unstable government spending would fuel a devastating inflationary crisis that would crush working families and severely devalue the dollar. The US will soon be unable to pay its bills, critical government programs will face brutal cuts or be abolished altogether and the US will be forced to default on its debt.
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That’s what happens if Democrats skimp on the $5.5 trillion tax and spending spree. According to estimates in its own bill, the US debt will exceed $45 trillion over the next 10 years – a nearly unimaginable level of debt that will have disastrous consequences for the American economy and our families.
American people are smart. They will never vote for politicians who will raise taxes enough to bail Congress out of its decades of reckless spending and procrastination – and they shouldn’t.
So, it must be said, Americans under total Democrat control in Washington and nearing retirement beware. Democrats’ insane loan growth will have a devastating effect on once-secured investments like long-term Treasuries. This is the result of Democrat control.
While the crisis did not build up overnight, Democrats’ faith in modern monetary theory (MMT) has fueled it like never before. Those subscribing to the MMT believe that there is no need for large governments such as the United States to comply with borrowing or lending limits. They think we can print more currency to meet spending demands. Under MMT, spending has no consequences, inflation is not real, and debt does not matter. It is as crazy as it sounds and has no place in American economics or the mind of any sane person.
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Following the orders of their de facto party leader, self-proclaimed Democratic Socialist Sen. Bernie Sanders (I-Vt.), Democrats have been brazen in their full embrace of their flawed absurd economic ideology. The cost of this ideology and their spending policies is the death of America’s credit. This will happen if the agenda of systemic socialism being pushed by Bernie Sanders and embraced by President Biden takes effect. Thankfully, this is not our future.
While my Republican colleagues and I have taken a stand against raising the debt limit without more measures of fiscal responsibility, Congress must make substantial reforms to avoid the imminent death of the American debt and secure a strong and stable financial and priorities. Must be committed to the right change. future for our nation. That’s why I’m my. like fighting for general knowledge reforms Federal Debt Emergency Control Act And this Full Faith and Credit Act Those who hold Congress accountable and prevent the ruin of decades that have created our current debt crisis.
These kinds of reforms are what our country needs to reverse, rebuild its accountability to the American people, and secure a stronger and more certain tomorrow for our children and grandchildren. it has to be done. I know because I led similar efforts to restore financial stability to my state when I was governor of Florida. In eight years, we paid off a third of the state’s debt, cut taxes 100 times, slashed 5,000 cumbersome regulations, and Florida’s business boom created more than 1.7 million new jobs. Democrats said the sky is falling. It was not. Our playbook worked in Florida and it will work across the country.
America is at a crucial moment. The decisions we take in the coming months will have a huge impact on the future security and prosperity of our country. We must reject the failed ideas of socialism and MMT by fighting for a smart policy that returns the United States to renewed financial strength and global power. We are second to none for the future of the American people and our great nation.
Republican Rick Scott represents Florida in the United States Senate. He is the former governor of Florida.