Yesterday a bomb exploded. In an AP article, "The US national debt now stands at $40 trillion," I read:
"The national debt surpassed a record $40 trillion on Wednesday, a staggering milestone as defense costs, social programs like Social Security and Medicare and interest on the burgeoning deficit make up an enormous share of federal spending."
Mr. President, the national debt is neither peanuts nor was it reduced. It actually rose more sharply than the government and experts had previously forecast. Originally, the debt was expected to reach $39.4 trillion by the end of fiscal year 2026.
One explanation of this debt explosion is the war with Iran, which has now
been ongoing for nearly six months; 18 U.S. soldiers have been killed, and
according to U.S. Secretary of Defense
Pete Hegseth, the cost had reached $37.5 billion in July. There is no end in sight.
This record-high debt is even drawing criticism from within the ranks of Trump's Republicans, where Senator Rick Scott joined the protest of many lawmakers writing, "Americans deserve better." He called on Congress to "get spending under control and balance the budget."
Thomas Jefferson, one of the Founding Fathers of the United States, wrote in a letter: "I count frugality among the first and most important republican virtues, and public debt among the greatest dangers."
However, the Trump administration shows no signs of cutting back on spending. The tax bill known as the "Big Beautiful Bill," which Congress passed last year, will further destabilize public finances in the coming years.
Meanwhile, on Wednesday, an undisturbed POTUS unveiled a new construction project to a crowd of journalists: Replacing the White House driveway.
This record-high debt is even drawing criticism from within the ranks of Trump's Republicans, where Senator Rick Scott joined the protest of many lawmakers writing, "Americans deserve better." He called on Congress to "get spending under control and balance the budget."
Thomas Jefferson, one of the Founding Fathers of the United States, wrote in a letter: "I count frugality among the first and most important republican virtues, and public debt among the greatest dangers."
However, the Trump administration shows no signs of cutting back on spending. The tax bill known as the "Big Beautiful Bill," which Congress passed last year, will further destabilize public finances in the coming years.
Meanwhile, on Wednesday, an undisturbed POTUS unveiled a new construction project to a crowd of journalists: Replacing the White House driveway.
"This was always asphalt, which is very basic, not appropriate for a great house - for a great place like the White House," and Trump continued, "The driveway has been redone with a very special stone: California-mined white granite. "
"Without even having to go into the White House, they [his guests] get out of the car on the beautiful new roadway. They get out of the car, and they walk down this path onto that [new] helipad, and they can have cocktails and everything outside of the White House, and then they go into the ballroom. "
Trump's tour of the ongoing White House projects underscored how central construction is to his presidential legacy.
"One thing I know how to do is build … I love construction, I love seeing things properly taken care of. The projects will be here long after we're gone."
Financially, POTUS's construction frenzy is peanuts compared to the unprecedented $40 trillion figure of national debt, but it is politically hazardous.
The $40 trillion includes not only defense spending in the almost-6-month-old war in Iran but also government efforts to lower the cost of gas and groceries for U.S. citizens.
As explained by a White House spokesman, "The Trump administration has been focused on slashing waste, fraud, and abuse in federal spending while accelerating economic growth to get America's debt-to-GDP ratio trending in the right direction."
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| U.S. National Debt as a Percentage of GDP (©NZZ) |
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The development of national debts as a percentage of GDP for the USA, China, Germany and Switzerland. For Germany, the effect of the Schuldenbremse and the Corona pandemic on the curve's shape is clearly visible (©NZZ) |
Do I read correctly? I think we would be lucky if we could keep our present standard of living.
Indeed, Margaret Spellings, president and CEO of the Bipartisan Policy Center, countered, "The federal debt is already raising the cost of living and choking out other spending and investment, threatening our economy and Americans' long-term prosperity."
And Mr. Peterson, please don't just write, but show the direction to the U.S. lawmakers to put your nation on a more affordable and sustainable path.
Here are two letters to the editor on the AP article:
One pragmatic: "Cut the Defense budget to $250B (same as China who has 4x's the population) and then tax the rich at 1950's levels (90%)."
One radical left (?): "… we seem to have mountains of money to be spent on war and killing; military contracts funneling tax dollars to corporate cronies and members of the Trump family. Our historic landmarks in the Capitol city that were once examples of a dignified Puritan heritage have now been flounced out in gold with Trump's name pissed all over them, and the middle-class that is supporting this excess is rapidly disappearing under a tax burden that the wealthy are exempted from. Fiscal conservatism is no longer embraced by the GOP … Hoarded wealth seems to be the goal, and if the economy crashes, we've already seen that the rich will be first in line for their bailout, while the rest of us deal with the consequences. The wealthy are rarely touched by the 'Hard Choices' that will be made."
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