America’s Fiscal Crisis: Shutdowns and Unchecked Debt

By Veronique de Rugy

The federal government has added $2 trillion to its debt over the past 12 months, a surge typically seen during wartime or national emergencies. Yet, as Republicans and Democrats clash over budgets, the nation is not at war. The economy thrives, but another shutdown looms, accomplishing nothing about the root issue: unsustainable spending, particularly in entitlement programs.

Federal debt has risen from $35.5 trillion to $37.5 trillion since last September. In peacetime, with low unemployment and a booming stock market, this is reckless. Washington’s focus remains on political theater rather than addressing fiscal responsibility. Republicans, despite their fiscal conservatism, have contributed significantly to the debt surge, citing minor “savings” from tariffs and efficiency measures that pale in comparison to the crisis.

Tariff revenue, often touted as a solution, does little to alter the fiscal trajectory. Even if all Trump-era tariffs were collected, the debt-to-GDP ratio would exceed 124% by 2035. These taxes harm domestic growth while offering minimal relief. Democrats, meanwhile, push for expanded spending, blocking a resolution to maintain Biden’s 2024 budget levels and forcing a shutdown. They demand $1.5 trillion in new entitlements, including permanent Obamacare subsidies that now cover 93% of premiums—up from 68% in 2014.

Entitlement programs have grown exponentially, with agencies like Health and Human Services and Agriculture managing hundreds of welfare initiatives. Tax breaks disguised as benefits further inflate the budget. Deficit Day this year fell on September 21, meaning every dollar spent afterward is borrowed. With $19 billion in daily expenditures, the nation faces a debt crisis that neither party has addressed.

Solutions require cutting entitlements and eliminating redundant programs, but both sides prioritize political gain over action. The result is a government borrowing as if in wartime while claiming normalcy.