Betsy McCaughey: Spendaholic Politicians Are Destroying Your Economic Future

The national debt is not something that people worry about. Unfortunately, this includes President Joe Biden as well as the spending-hungry Democrats in Congress.

They should be concerned. No matter your political affiliation, you should be worried too. Economics is science. Numerous studies by top economists have shown that a country’s debt can lead to economic decline. Inflation increases, which causes jobs to disappear and makes it difficult for people to afford mortgage rates to purchase a house. Ouch.

This is where the U.S. is headed. The nation’s debt has reached its highest point since WWII and will likely surpass that mark soon. In 2022, it hit 98% of GDP — everything we all produce going to work every day — and is growing rapidly. The U.S. stands alongside countries like Portugal, Mozambique and Angola. We don’t want our children to grow up in a failing economy.

It wasn’t always this way. In the 50 years that have passed, the average ratio of debt to GDP was 46%.

Republicans, who recently won control of the House of Representatives, are withholding the House’s approval to raise the debt ceiling — the amount the nation is legally permitted to borrow — until Democrats negotiate a plan to reduce spending and pull the nation back from its dire straits.

Biden visiting Al Sharpton’s National Action Network on January 16, which was called the House Republicans “fiscally demented.” Biden calls anyone with nerves “demented.”

Never mind. They are making a reasonable demand. If Washington’s leaders aren’t willing to rein in government spending then who will?

Paul Krugman, New York Times columnist, labels the House Republicans’ quid-pro-quo economic terror. Nonsense. It is Congress’s continued borrowing that is the real terrorist act domestically.

It cannot continue this way for so long. People who live on credit cards but only pay the minimum monthly payment can confirm this. Credit card payments eventually don’t pay any new goods or services. Only interest.

This is the reality that our nation will be facing if it does not change its course. Interest costs will rise, rates will rise and an increasing portion of tax revenues will be used to pay interest. According to the Congressional Budget Office (CBO), interest expense will increase by three times in the next ten year. In a decade, interest expenses will surpass defense spending. Yikes.

If fiscal sanity cannot be restored, the government will eventually have to reduce services or impose huge tax increases, or both.

Worse, the government is borrowing more money, which means less money available for loans to homeowners and businesses. Wages fall and jobs disappear. The economy spirals down. It’s not a pretty picture. Ask economists who have studied high-debt countries.

Harvard’s Carmen Reinhart, and Kenneth Rogoff analysed 44 countries for their landmark analysis in the American Economic Review. They found that when national debt exceeds 90% of GDP — a benchmark that’s already in the U.S.’ rearview mirror — the economy falters.

Another 36 studies have confirmed that government borrowing is a major factor in economic stagnation. Washington politicians should stop padding their political fortunes by looking at the scientific facts.

Unfortunately, Democrats are unlikely to agree to spending reforms if they don’t have to face pressure from the House Republicans who want to keep the debt ceiling increase in place.

After all, in December, as a last hurrah before ceding control of the House, Democrats enacted an omnibus spending bill that included 7,200 earmarks — favorite projects of often unnamed legislators bringing pork home to their own district. Earmarks, which are a symbol of corruption were banned for a decade. But, in 2021, Democrats controlled Congress restored them in a flourish political cynicism. As if to show a middle finger the unsuspecting public.

Rhetorical attacks against Republicans for delaying a rise in the debt ceiling continue to mount. Bloomberg’s editors identify the Republican strategy “malpractice.” Democratic Sen. Chris Van Hollen (Md.) Republicans accused of an “extremist agenda.”

There is nothing “extremist” It is about setting the nation on a fiscally responsible course. Republicans need to stay unified — a formidable challenge — and hold their ground.

It is imperative that the party of unlimited spending, vote buying and voter buying be ended before the U.S. and its standard of living are destroyed.

Betsy McCaughey was a former lieutenant governor for New York and is currently the Chairman of the Committee to Reduce Infection Deaths. Follow Betsy McCaughey on Twitter. Visit the Creators Syndicate website www.creators.com for more information about Betsy McCaughey. You can also read cartoonists and writers from Creators Syndicate.

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