The debt ceiling deal ignored the real problem

Politics is primarily the art of theater and fantasy. The crisis is fabricated so that both sides can claim to be the firefighters who put out the fire. But the underlying issues remain unresolved, and new crises are sure to emerge in a never-ending cycle.

The recent debt ceiling agreement, which suspends the debt ceiling for two years, is symbolic. The crisis was sparked by government overspending that surged the national debt above $31 trillion, creating maintenance costs of nearly $1 trillion despite record-low interest rates.

The Congressional Budget Office predicts that the national debt will reach a staggering $50 trillion by the end of next decade. If interest rates on Treasury bills rise to historical averages, most of the federal budget will go to paying for debt maintenance, and the rest will go to Defense, Social Security, Medicare, and everything else. . Our economic doomsday clock is approaching midnight. And the president and Congress have their heads in the sand like ostriches.

In just 14 years, the Social Security Trust Fund needed to pay benefits is projected I’m exhausted.Medicare Hospital Insurance Fund projected Budget deficits of trillions of dollars per year are projected as far as the eye can see. National security spending has spiraled out of control, even though the threat of foreign aggression against the United States has been eliminated. Despite being an order of magnitude safer country in world history, we spend more than $1.6 trillion a year preparing for the Last War, more than 50 percent of his total discretionary spending. To do. An invincible self-defense national defense strategy could be maintained for a fraction of the current $1.6 trillion.

The battlefield is shifting to outer space and cyberspace. We now boast Space Command. Cyberattacks can easily destroy a nation’s infrastructure and military communications. Military technology, including drone warfare, is changing rapidly. Traditional weapons systems that take years to come to fruition are generally obsolete before they are even deployed.

The F-35 Lightning II Joint Strike Fighter Program is the Department of Defense’s most expensive weapon systems program.Department store Estimate Purchasing, operating and maintaining aircraft and systems will cost nearly $1.7 trillion over their lifetime. I would bet the F-35 will never be used to defend the United States against foreign aggression.

Rights programs must also be arrested or stopped in favor of a single national safety net for the truly poor. In fiscal 2022, the entitlement program has used up 52% ​​of the budget. In the previous fiscal year, that figure reached an astronomical 66% due to the COVID-19 lump sum payment. There are six main rights programs based on different requirements. Social Security, Medicare, Temporary Assistance for Needy Families, Medicaid, Unemployment, and Financial Assistance. These rights programs should be phased out in favor of a national safety net that would rival President Richard Nixon’s Family Assistance Program to ensure that all citizens have access to basic necessities.

The goal should be to encourage self-improvement and self-reliance, the touchstones of self-esteem and pride. As the saying goes, “Give a man a fish and feed him for a day. Teach a man to fish and feed him for a lifetime.”

Now is not the time to be content. The financial crisis in this country is increasing day by day. The population is aging, placing an exorbitant economic burden on new generations. In 1960, there were 5.1 workers per social security beneficiary. That ratio is now down to 2.8.

The Federal Reserve is bankrupt. The balance sheet of U.S. Treasuries and mortgage-backed securities surged from $4 trillion at the start of the COVID-19 pandemic to $9 trillion in early 2022 as interest rates approached zero. Now that interest rates have risen to historical averages to combat inflation, the value of these bonds and securities is only a fraction of their face value and cost. The Fed would be insolvent if assets were run at market value. Many commercial banks have likewise greatly overvalued loans and securities due to skyrocketing interest rates. The bailouts of Silicon Valley Bank and First Republic Bank are just the tip of the iceberg.

Herbert Stein chaired the Council of Economic Advisers under Presidents Nixon and Gerald R. Ford. He advised, “If something cannot go on forever, it will stop.” As nations head toward bankruptcy every day, we are about to witness the truth of that wisdom. Congress and the White House are reeling as the country is overthrown.

Armstrong Williams (@ARightSide) is the owner and manager of Howard Stirk Holdings I & II Broadcast Television Stations and was named 2016 Multicultural Media Broadcast Owner of the Year. He is the author of “”.Awakening Virtue“