The national debt is nearing $40 trillion, passing $39.5 trillion this month. The projected budget deficit this year, before the Iran not-war happened, was $1.9 trillion. Proposed extraordinary spending now pending in Congress could push this year’s deficit beyond $2 trillion.
The staggering amount of debt itself helps generate huge budget deficits. The interest on the debt this fiscal year is projected to hit $1 trillion for the first time. That amounts to 15% of total government spending. It is projected to grow as the debt continues to escalate.
Both parties blame the other for mounting debt. As the chart shows, the debt has been surging since Bill Clinton was president under both parties.
The U.S. debt to GDP ratio of 123% ranks behind only Japan among nations with developed economies. Germany’s ratio is half ours at 62%. However, France and Canada rank just below the U.S. with 113% and 111% ratios respectively.
The main drivers of the current $1.9 trillion deficit, according to the Congressional Budget Office, are tax cuts and spending in the Big Beautiful Bill, rising interest costs, tariffs, and higher mandatory spending. The CBO projects annual deficits to average more than 6% of GDP over the next decade.
Surprisingly in the face of the debt and current deficit, the president and congressional leaders are asking for an extraordinary 40% spending increase for defense to $1.5 trillion and prefunding homeland security for three years at $75 billion.
The data suggests there are few if any true fiscal conservatives left in Washington.
“The way of fools seems right to them,” – Proverbs 12:15.
Bill Crawford is an author and syndicated columnist from Jackson.
