Given the gravity of the debt problem and the huge flaw in our system of government that prevents meaningful reductions in spending (because that means cutting entitlements, and losing votes), some credit needs to be given to the new administration for doing SOMETHING. But what is being done is somewhat of an unplanned wrecking ball approach, that often disregards the law. My R friends who are financially savvy say: Screw the law; cuts must be made. But would they have so stated if Joe Biden was doing the same, perhaps in the opposite direction? It's a total mess. Given the demographics, it will only get worse. The CBO's experts expect public debt to increase from $28T last year to $52T in 2035, with net interest expense then being 1.7 x military spending. (They used an average 10-year T-Bill rate of 4%.) Of course they'll be wrong, as we'll spend a lot more than budgeted on the military and we'll borrow a lot more than expected, as has always been the case in the past. State legislatures must act to force a balanced budget amendment, to be gradually phased-in, thus forcing reforms and reductions to all costs (or tax increases to the extent costs aren't cut).
Great piece.
Given the gravity of the debt problem and the huge flaw in our system of government that prevents meaningful reductions in spending (because that means cutting entitlements, and losing votes), some credit needs to be given to the new administration for doing SOMETHING. But what is being done is somewhat of an unplanned wrecking ball approach, that often disregards the law. My R friends who are financially savvy say: Screw the law; cuts must be made. But would they have so stated if Joe Biden was doing the same, perhaps in the opposite direction? It's a total mess. Given the demographics, it will only get worse. The CBO's experts expect public debt to increase from $28T last year to $52T in 2035, with net interest expense then being 1.7 x military spending. (They used an average 10-year T-Bill rate of 4%.) Of course they'll be wrong, as we'll spend a lot more than budgeted on the military and we'll borrow a lot more than expected, as has always been the case in the past. State legislatures must act to force a balanced budget amendment, to be gradually phased-in, thus forcing reforms and reductions to all costs (or tax increases to the extent costs aren't cut).