October 2021
While we watch the national debt pass $28 trillion, thankfully Nebraska’s State Constitution requires a balanced budget.
Omaha voters should feel good about the low-rhetoric, fiscally responsible way in which Mayor Jean Stothert and the City Council have led. Despite the obvious benefits of tamped-down partisanship, odious actors maneuver to undermine George Norris’ nonpartisan unicameral system.
Money, get away. Get a good job with more pay and you’re OK. (Pink Floyd, “Money,” from “Dark Side of the Moon”)
While the economics of our national debt is complex, it’s clear that increasing spending amid massive tax cuts doesn’t work. Meanwhile, Washington officials leverage gorged spending to curry favor among voters and special interests.It appears President Joe Biden has committed to Modern Monetary Theory, the idea that since we print our own currency, debt is not a concern. Gone are the days of discerning between needs, those things that require government spending; and wants, expenditures that haven’t previously won political approval.
As the number of those paying federal income taxes declines, the per-taxpayer share of the national debt exceeds $228,000. That’s not including Biden’s $5 trillion in spending bills.
Grab that cash with both hands and make a stash. New car, caviar, four-star daydream, think I’ll buy me a football team.
While there is plenty of fodder to wallop Biden, Republican administrations have grazed equally at the trough of excessive spending. According to WhiteHouse.gov, Jimmy Carter contributed a paltry $75 billion per year to the national debt while Ronald Reagan contributed $450 billion annually. Things tamped down under H.W. Bush ($375 billion) and Bill Clinton ($325 billion) before skyrocketing under G.W. Bush ($1.55 trillion per year). Barack Obama’s terms added $1.037 trillion per year while Donald Trump grew the debt by $1.7 trillion annually. Some estimate Biden could grow the debt by $1.825 trillion per year.
Money, it’s a crime, Share it fairly but don’t take a slice of my pie.
What to do? Weighing expenditures is one answer.
Recently Sens. Chris Coons and Raphael Warnock proposed government funding of Historical Black Colleges and Universities. HBCUs afforded African Americans a pathway to higher education at a time when racism and Jim Crow prevented them from attending most other institutions.
Although HBCUs certainly cradle unique cultural experiences and traditions, at a time when our national debt is so high, does this make fiscal sense? Should the federal government step up funding private HBCUs when we already have an extensive system of land grant universities?
Another option to addressing our rising national debt is to rein in spending.
Money, so they say, is the root of all evil today. But if you ask for a raise it’s no surprise that they’re giving none away
Despite warnings from Harry Truman and Dwight Eisenhower, military spending remained high as the Cold War heated up. In 1996 we spent $266 billion on defense (16.8% GDP). Today we spend $800 billion annually (19.3%). However, China, ($252 billion) and (Russia $62 billion) combined, spend about a third of what we spend. For example, the United States today has 20 aircraft carriers. China has four and Russia has one. Earlier this year, the secretary of the Air Force asked Congress to allow him to retire obsolete aircraft systems including A-10s, C-130s, KC-10s, and MQ-9s because “they consumed necessary resources.”
One way to think about our debt-funded, defense umbrella is that it allows European nations to spend 1.4% of GDP on defense. One could argue that U.S. taxpayers are indirectly funding Europe’s free health care. Should we?
If we’ve learned anything from Korea, Vietnam, Afghanistan and Iraq, it’s that military superiority alone has not won land wars.
What’s the lesson?
If we want to pass on something other than a national dumpster fire to our children and grandchildren, we must approach spending, and taxing, more responsibly.
This issue demands hard, unpleasant but necessary, civil, public debate to determine national priorities. “All of the above” is no longer an option.
I’m in the high-fidelity first-class traveling set. And I think I need a Learjet
Like the Greatest Generation that preceded us, baby boomers must lead by making personal sacrifices and forgoing wants, by demanding intellectual honesty from ourselves and elected officials, choosing to tamp down the corrosive effects of hyperpartisanship, and living within our means.
|
President |
Net Contribution to Debt in Billions |
Annual Equivalent in Billions (yrs/net) |
|
Biden |
7,300 |
1,825 |
|
Trump |
6,800 |
1,700 |
|
Obama |
8,300 |
1,037 |
|
Bush #43 |
6,200 |
1,550 |
|
Clinton |
1,300 |
325 |
|
Bush #41 |
1,500 |
375 |
|
Reagan |
1,800 |
450 |
|
Carter |
300 |
75 |








