The National Debt: A $36 Trillion Challenge
The national debt is a staggering $36.17 trillion—a number so large it’s nearly impossible to fully comprehend. Servicing this debt costs around $726 billion annually, consuming 14% of total federal spending in 2023. This means 14 cents of every tax dollar goes toward paying interest on the debt, rather than funding essential programs like infrastructure, education, or national security.
The Federal Deficit: 2023 vs. 2024
In 2023, the federal deficit was $1.695 trillion. By 2024, it had climbed to $1.8 trillion, marking an 8% increase and making it the third-largest federal deficit in U.S. history. To put this in perspective, the deficit-to-GDP ratio for 2023 was 6.2%. According to the Congressional Budget Office (CBO), this ratio is projected to grow significantly over the next 30 years, with federal debt held by the public reaching 116% of GDP by 2034.
It’s been 24 years since the U.S. last saw a budget surplus, back in 2001, thanks to effective bipartisan leadership from House Budget Chairman John Kasich, President Clinton, and Speaker Gingrich.
Why the Debt Matters
Massive federal deficits have widespread consequences:
Inflation and higher borrowing costs
Reduced economic growth
Lower investor confidence
Less flexibility during wars or economic crises
Diminished global influence
In 2023, the federal government spent $6.3 trillion, of which 73% was mandatory spending and 27% was discretionary. Mandatory programs, such as Social Security, Medicare, Medicaid, and veterans’ benefits, are on “automatic pilot” and don’t require annual funding approval by Congress.
As more Americans become eligible for Social Security and Medicare, mandatory spending continues to skyrocket. Interest costs on the federal debt are growing faster than any other spending category. By 2033, these costs are projected to double to $1.4 trillion—20% of total federal revenues!
Mandatory Spending: The Real Challenge
It’s clear that we cannot continue on this path of fiscal irresponsibility. As Ronald Reagan famously said, “Congress spends money like a drunken sailor, but I never met a sailor with the imagination of Congress.”
To truly control federal spending, mandatory spending reforms are essential. Programs like Social Security and Medicare have long been considered the “third rail” of politics—touch them, and you’re politically doomed. However, without significant reforms, achieving meaningful federal spending cuts will remain impossible.
While there are many discretionary programs that could be eliminated or reformed, they alone won’t close the gap. Mandatory spending must be addressed to make real progress.
The Path Forward: DOGE and Bipartisan Reform
So, what’s the answer? The current trajectory is unsustainable. Enter the Department of Government Efficiency (DOGE), an advisory body to the president and Congress, offering a glimmer of hope.
DOGE, championed by leaders like Elon Musk and Vivek Ramaswamy, aims to recommend $2 trillion in federal spending cuts. While this is an ambitious goal, even achieving half of it would be a significant success.
For DOGE to succeed, its recommendations must be bipartisan. A one-party approach will struggle to gain traction on Capitol Hill. Securing bipartisan buy-in from the start is crucial for creating actionable reforms.
A Call to Action for the Future
The national debt crisis is one of the most pressing challenges facing the United States today. Without decisive action, future generations will bear the brunt of our fiscal mismanagement. For the sake of our country, DOGE must succeed in its mission.
