As we look at the current state of our nation, there is no denying that we are in the midst of an economic crisis. Supply chain bottlenecks, record fuel prices, and soaring inflation are just the tip of the iceberg. However, what is perhaps even more concerning is the looming economic crisis that could risk the full faith and credit of the United States.
Our total national debt has surpassed $31 trillion, which is 15 times larger than in 1984 when Democrat Sen. Joe Biden warned of “economic disaster” unless Congress took “dramatic actions on deficits right now.”
Yet, the current administration has failed to take the necessary steps to address the problem. In fact, Biden missed the deadline to submit his budget proposal to Congress for the third straight year. This follows his party’s $5 trillion spending spree.
However, it’s not just the current administration that’s to blame. Both political parties have failed to get serious about the budget, deficits, and debt. Digging out of this hole demands action from all corners of government. This is why we must return to the fundamentals and restore fiscal sanity.
One of the most critical steps we must take is to rein in federal spending. Government borrowing will increasingly crowd out private investment, leading to slower economic growth and lower wages.
A greater portion of Americans’ hard-earned tax dollars will be diverted away from government services to meet our debt obligations.
Within a decade, interest on the debt will exceed what we spend on national defense. In 30 years, annual interest costs will eclipse the cost of Social Security and Medicare.
To prevent this from happening, we must combine a debt limit increase with meaningful action on federal spending. Debt limit action is frequently paired with new budget controls, and Biden supported such strategies in the 1980s and ‘90s.
There is no good reason to abandon that logic now. Biden should begin bipartisan negotiations with Speaker Kevin McCarthy and congressional Republicans in earnest.
Returning to fundamentals is a critical step in restoring fiscal sanity. Appropriations Chair Sen. Patty Murray and ranking member Sen. Susan Collins have announced a commitment to regular order. The Senate Budget Committee should follow suit. The sooner congressional appropriators have direction on target spending levels, the sooner we can restore regular order in these broken processes.
At the end of the day, getting our fiscal house in order is an economic and national security imperative. The longer we wait, the greater the risks. Republicans are eager to get to work and protect the full faith and credit of the United States.
However, we cannot do this alone. We need both political parties to come together and take the necessary steps to address the problem. If we don’t, we are destined to face the same challenge, only with fewer options next time.