Will the debt bubble burst?
By Frank Mazur
President Biden and Congressional Democrats want everyone to pay their fair share but ignore spending. Consequently, the national debt is accelerating and, including unfunded obligations, it exceeds $123 trillion- that’s $850,000 per taxpayer.
Social Security and Medicare compromises 78 percent of the unfunded burden. Both parties ignore this obligation and just spend like addicts. The recent Biden green infrastructure bill and his Build Back Better socialistic agenda adds $6 trillion more.
When Washington creates debt, they print more money and inflation kicks in. Some call this a “bubble economy”. It works when the economy grows faster than debt, but it turns into a Ponzi scheme when the bubble (debt) expands and grows faster than the overall economy.
We can vote people into office who are fiscally responsible, but there is very little appetite for restraining. Republicans have always preached paying off the debt and controlling spending but their intentions aren’t consistent with actions. Democrats are always compulsive spenders.
Voters need to challenge politicians on fiscal discipline. They can advocate a Balance Budget Amendment, line-item veto and/or support Senator Rand Paul’s “Penny Plan” that requires a one penny per-dollar reduction in spending off the top-line. Paul says his plan would balance the budget in 5 years. Finally, Voters can impose Congressional term limits.
We didn’t get here overnight, but politicians through decades have made many irresponsible decisions. It will take sacrifice and discipline to restore fiscal accountability or the consequences will be painful. We get what we accept!
The author is a South Burlington resident and former member of the Vermont House of Representatives