The Debt Ceiling Fight is a Reminder of America’s Dire Fiscal Future

May 11, 2023

The longer we wait to address our debt, the more painful it will be.

by Veronique de Rugy Reason.com

The debt ceiling standoff has people concerned about what will happen if the U.S. defaults on its debt. I certainly hope both sides will come together to avoid this outcome. But it is still worth reminding everyone how incredibly precarious the status quo is, and why something needs to change.

You’ve heard the warnings about our debt levels, to the point where they might be easy to tune out. I make these all the time. When assessing how much we should worry, it’s wise to look both at our current situation and where we’re heading. This year, our budget deficit will likely be $1.4 trillion. What’s more, the deficit will reach about $2.8 trillion in 2033. And that’s assuming peace, prosperity, relatively low interest rates, no new spending, and that some provisions of the 2017 tax cuts will expire as scheduled.