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America headed for ‘absolute catastrophe’ of debt collapse, warn senators, but Congress won’t stop spending

By J. D. Heyes, NewsTarget

(NationalSentinel) Democratic voters who watched their prospective 2020 presidential candidates over two nights last week were likely enthused by all the free stuff that was being promised.

Even to people who aren’t American citizens.

In addition to pledging free healthcare for illegal aliens, virtually all 20-odd candidates mentioned new ‘freebie’ programs they would try to enact if they manage to knock off POTUS Donald Trump next year.

No more college debt.

A “Green New Deal.”

“Medicare-for-All.”

In the past these candidates have also talked about subsidized housing for all, a ‘basic income,’ a much bigger minimum wage — all things that are either going to run businesses and corporations into so much debt they have to close or will bankrupt our country.

The Green New Deal, which envisions replacing all combustion engines with battery or solar power — including planes, trains, and automobiles — as well as calling for a complete energy remodel of every single building in the country, all within a decade, would alone add tens of trillions of dollars in costs to businesses and to the economy and the government.


Medicare for all would cost at least $32 trillion over 10 years, according to one study.

College debt would cost taxpayers/our government nearly $1.5 trillion (as most loans are government guaranteed).

As we noted last week:

In all, in a single debate appearance and using just a scratch pad, I figure these 2020 Democrats have proposed upwards of $70 to $100 trillion in new spending over, say, a decade. And no one on the NBC ‘news’ panel bothered to ask a single candidate how they would pay for all of this new spending.

It’s the same old song-and-dance from Democrats (and far too many Republicans): Spend, spend, spend now and…pay later. At some point. Maybe.

Following the tax cuts implemented by the GOP Congress and President Trump, the U.S. government still managed a record tax collection — thanks, in large part, to the fact that Trump’s economy was/remains red-hot and more Americans were back at work.

But spending hasn’t abated. At all. In fact, deficit spending has gotten worse under the Trump administration than it was under Obama’s eight-year reign of economic terror. So that’s saying something.

And it’s not as if no one in Congress knows this. Budget hawk Sens. Rand Paul (R-Ky.) and David Purdue (R-Ga.) recently voiced their concerns that Congress’ spendthrift habits (not its revenue stream) are blasting the debt to new records daily. Worse, few in the Legislative Branch seem to care. (Related: How the federal debt went from $1 trillion to $18 trillion in 33 years.)

“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,” said Perdue in a statement, The Epoch Times reported.

The Georgia Republican, who used to be a Fortune 500 exec, was citing the latest economic forecast from the Congressional Budget Office, which isn’t always correct except when it comes to predicting more debt — and what will happen (collapse!) if the debt continues to rise.

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 last time our debt-to-GDP ratio reached that level was when it grew to 75-plus percent during the waning years of World War II, as America cranked out the war machine needed to win.

For his part, Paul said on the Senate floor that “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,” he added.

The Epoch Times added that the CBO’s report warned that its projections show:

  • 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.

Both Perdue and CBO warned that failure to get control of the debt will sooner or later make it impossible to avoid spiraling interest rates, sharply increased taxes and huge benefit cuts in entitlements, especially Social Security, Medicare, and Medicaid.

His pleas are falling on deaf ears.

As for POTUS Trump, is this spiraling debt his fault? Maybe partially. After all, he signs the budget deals into law.

However, during his 2016 campaign, Trump vowed to eliminate the then-$19 trillion national debt in two terms.

Also, Russ Vought, acting director of the Office of Management and Budget, was recently ‘grilled’ by a Democrat-run House Budget Committee in March about the deficit. Talk about an exercise in hypocrisy, it also highlighted why this administration — and past Republican administrations that have also attempted to curb the budget — can’t get it done: Democrats politicize the issue to death.

In that March hearing, the chairman of the panel, Rep. John Yarmuth (D-Ky.), opened the hearing by killing any hope of bipartisan budget cutting when he accused Trump of the same thing Democrats always accuse Republicans of doing: Starving kids, taking healthcare away, depriving Americans of this or that.

The president actually proposed $2.7 trillion in cuts to the federal budget across a variety of line items; Yarmuth called them “extreme to a level that is malicious a level that is intended to do harm.”

American Liberty: “Established 1776” Order yours now!

Instead, Democrats on the panel went on to attack Vought over the Trump/GOP tax cuts in 2017, which Vought admitted would initially add to the deficit but would later trim it with increased revenues from economic growth.

Yarmuth said it’s “a harsh budget that abandoned working Americans and families.”

And there we have it: Democrats never, ever want to a) let Americans keep more of what they earn or at least decide, on a local/state level, how much taxation they want; and b) reduce federal spending for anything except defense.

As Democrats in Congress have reminded the president in recent weeks over his desire to reprogram funds for border wall construction, the Legislative Branch is in charge of the nation’s purse strings.

But lawmakers can’t be bothered to rein in their spending because spending buys votes — meaning this out-of-control debt spiral will likely only end one way: With a collapse.

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Steve
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Steve

Sorry it is not Congress that cannot control its spending. It is the American Voter that elected them and won’t control them and keep re-electing them. So in the end Americans are responsible NOT Congress. You get the Gov’t you elected and deserve.

V.Lombardi
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V.Lombardi

China Mitch and his sidekicks Betrayer Ryan & Crybaby Boehner played huge roles in excessive spending, sacrificing the party base for special interests, yielding to the left every time.

Eloise
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Democrats and RINOs stupidly support open borders for anyone and everyone who wants to enter our country unvetted and unlawfully (especially drug and human-trafficking cartels with lots of cash that can find it’s way into their campaign and personal coffers), promising free college for those illegal migrants and everyone else, free medical care for all—especially noncitizens—subsidized housing for all, reparation payments to all current African Americans for the wrongs committed by previous generations, and a Green New Deal that they claim will successfully dismantle and rebuild within a short time to eco-friendly, climate-saving standards all forms of transportation, buildings, and… Read more »

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