The United States has recently added a whopping $215.65 billion to its national debt in just 30 days, as per the latest data from the U.S. Treasury. From May 15th to June 15th, the national debt surged from $34,534,845,450,747 to $34,750,498,829,987.

Alarming figures reveal that the interest paid on the debt has already surpassed the amount spent on defense, medicare and Medicaid, and even exceeds the combined spending on veterans, education, and transportation. Vance Ginn, former associate director for economic policy of the White House’s Office of Management and Budget, 2019-20, warns in an op-ed for the American Institute for Economic Research that America is teetering on the edge of a fiscal abyss.

“These numbers are not just mere figures but represent an impending burden that future generations will have to bear. It goes beyond fiscal policy and delves into the realm of ethical responsibility. The severity of this debt is further exacerbated by the interest payments, which have skyrocketed to over $1 trillion annually, surpassing the country’s expenditure on national defense.”

This situation highlights a worrisome scenario where the government, in order to manage its debt, resorts to issuing more debt, a practice that is unsustainable according to any reasonable measure of sound budgeting. The economic consequences of this debt cycle are profound, resulting in higher interest rates, potential inflation, and a misallocation of resources that stifles productive activity in the private sector.

Not only will it prove challenging to avoid an increase in taxes for the middle class, but Ginn also warns that millions of Americans may lose their benefits as the programs face bankruptcy in the next decade. Drawing upon the words of Rahm Emanuel, former chief of staff to President Barack Obama, Ginn urges that this crisis should not be “wasted.”

“As we confront these fiscal upheavals, the expiration of discretionary spending caps and the debt ceiling by 2025 further complicates an already challenging budgetary environment. Without thoughtful reform, the US runs the risk of a severe budgetary crisis, especially in the ‘entitlement programs’ such as Social Security and Medicare, which consume a significant portion of the federal budget. These areas must be addressed as they will essentially go bankrupt in the next decade, resulting in substantial benefit cuts for millions of recipients.”

Given all these challenges, Ginn emphasizes the utmost importance of fiscal and monetary rules.

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