I know it’s no longer popular to talk about this, but if there is one single thing that will kill our country, it’s this.
The federal deficit surpassed $1 trillion in the first 11 months of fiscal 2019, the Congressional Budget Office (CBO) said Monday.
The deficit presently stands at $1.068 trillion, though it is likely to be reduced in September as quarterly tax payments are paid.
“In its most recent baseline projections, CBO estimated that the 2019 budget deficit would be $960 billion,” the CBO noted. That amount would be $181 billion higher than last year’s deficit.
The deficit as of Monday was running $168 billion ahead of the deficit in the last fiscal year at this time.
While mandatory spending such as Social Security and Medicare drive the deficit, it has shot up under President Trump‘s watch following the GOP tax cut bill and a series of bipartisan agreements to raise spending on both defense and domestic priorities.
The CBO has called the nation’s fiscal path “unsustainable,” noting that payments on interest alone were on track to overtake both defense and domestic spending by 2046.
We have seen this scenario play out time and time again in countries all over the world. At some point, the debt becomes so overwhelming that there are only three choices:
- Massive cuts in spending to free up money to pay debt that results in civil unrest. It would be better to cut smaller now than just abruptly abandon things like Social Security in the future.
- Cancel the debt and leave all of the bond holders empty handed. This would destroy our nation’s ability to borrow while wiping out the wealth of millions of people.
- Print more money to pay the debt. The result is rampant inflation that wipes out the wealth and swamps the incomes of every American. This is the option most often chosen by politicians because it’s easier.
There is no good outcome to this kind of debt. It’s a nation killer.