WASHINGTON—Republican senators David Perdue of Georgia and Rand Paul of Kentucky admonished Congress Wednesday to confront America’s exploding national debt and budget deficits now to avoid the national disaster that will follow if they don’t.
“The national debt topped $22 trillion this year. We’re heading for an absolute catastrophe if we don’t address the real causes of future increases to our national debt, which are Social Security, Medicare, and interest on the debt itself,” Perdue said Wednesday.
The CBO said “large budget deficits over the next 30 years are projected to drive federal debt held by the public to unprecedented levels—from 78 percent of gross domestic product (GDP) in 2019 to 144 percent by 2049.”
The only previous time in U.S. history that the national debt exceeded 75 percent of GDP was 1944 to 1950 as a result of the massive military expenditures during World War II.
The national debt began its steeply upward growth in 2008 when it consumed 35 percent of GDP, CBO said. Both the Great Recession of 2008-2009 and “and subsequent policies caused debt to grow sizably in relation to the economy over the next five years. By the end of 2012, debt as a share of GDP had doubled, reaching 70 percent.”
The upward trajectory has continued under President Donald Trump since he took office in 2017 with Republican majorities in both chambers of Congress.
- The Social Security and Medicare trust funds will run out of funds within 20 years if nothing is done to change the entitlement programs’ revenue sources.
- Absent major policy changes now, interest payments on the national debt will increase so much in two decades that sufficient funding will be threatened for national defense, veterans care, and other national priorities.
- If Congress and the president do not enact spending cuts in 2020 or raise individual income taxes in 2026 when certain features of the 2017 tax reform expire, the public share of the national debt could reach 219 percent by 2049.
- If Social Security benefits were limited to amounts payable strictly from the program’s trust fund, debt in 2049 would still reach 106 percent of GDP, still significantly higher than the current level.
The nation’s ability to respond in a timely manner in the event of military crisis at home or abroad could also be severely compromised, especially if the government had to default on its debt.
The foundation also calculated that the national debt represents $126,000 per U.S. household and $49,000 for every individual American.
On the same day Perdue spoke, Paul introduced an amendment to pay for the $4.5 billion border crisis emergency funding bill by re-directing funds from obscure foreign aid programs that he and other critics believe are wasteful and unneeded.
“We should not borrow the money, pull out the credit card yet again, every time a crisis occurs. Congress has an obligation to find lower priorities to cut to pay for higher priorities. I thought that’s what legislating was about.”
Paul said he was “proposing to actually pay for this by taking the money from a part of the budget that it’s being wasted and put it into the humanitarian crisis at the border.”
The seven included senators Michael Bennett of Colorado, Cory Booker of New Jersey, Kirsten Gillibrand of New York, Kamala Harris of California, Amy Kloubachar of Minnesota, Bernie Sanders of Vermont, Elizabeth Warren of Massachusetts,
Sen. Mike Rounds (R-S.D.) also missed the vote.