2/7/23

The debt ceiling, once again scheduled for debate in Washington, sits at $31.4 trillion versus the U.S. Gross Domestic Product of only about $25 trillion in 2022. This mountain of debt costs taxpayers $400 billion in annual interest payments or nearly 10% of annual federal tax revenues of $4.7 trillion which, against a budget of $6 trillion in spending, adds another of $1.3 trillion to the national debt. The problem is the number of committees each setting its own budget with no consideration of the impact on overall spending. It’s the same as you going to the corner payday lender, just paying the interest and borrowing more every week to cover the additional debt service, never paying it back but just kicking the debt can down the road. Until you eventually run out of road.