Issues
Our national debt has reached an astounding $38 trillion+, and economists warn that this growing burden inches us closer to the precipice of an “economic heart attack.” At our rate of unsustainable deficits, we risk triggering a debt spiral that would spell disaster for the nation. Entitlement, or “mandatory,” spending on Social Security, Medicare, Medicaid, and Welfare programs accounts for an ever-growing share of the federal budget and of the ratio to GDP. Simultaneously, interest payments on the federal debt follow a similar trend, stretching scarce tax dollars thin and drying up funds that could otherwise go to more productive uses. These two spending categories threaten to bankrupt the United States unless they can be brought under control with political will.
Congressional Budget Accountability
Congress must enact a binding mandate that requires a qualified annual budget to be passed on time every fiscal year. This ‘qualified’ budget must be limited to a deficit of 2-3% of the GDP, a percentage that mirrors our average GDP growth. The last two years have been unsustainable, with deficits of over 6%. If a qualified budget is not passed on time, Congress’s compensation should be temporarily suspended. If you don’t do your job, you don’t get paid!
Policy Solutions
2. Entitlement Spending Sustainability
The country requires a thorough analysis of the sustainability, costs, and benefits of our extensive entitlement programs, which consistently account for over 50% of our annual budget. We must ensure that our ‘safety net’ is fiscally efficient and works as intended, rather than as a ‘hammock.’