Congress debates a $6 trillion spending bill.

$6 trillion added to the nation’s debt will require $90 billion in annual debt payments and no reduction in the debt. This is on top of the $350 billion in debt payments we are currently obligated to pay. If inflation continues the Fed will eventually raise interest rates. The 10 year Treasury bill is approximately 1.5%. If rates were to double to 3%, not historically high, we are looking at $440 billion in additional interest payments totaling $880 billion (23% of total revenue). Let’s not forget the life cycle cost of new construction. While some money is to be spent on repairing aging infrastructure any new construction will require ongoing maintenance for the life of the infrastructure, an additional expense.

Our national debt ($20+ trillion) and debt payments are rising due to annual deficit spending (approximately $1 trillion). This doesn’t include trillions of debt for social security programs. Government receives $3.8 trillion in revenue and spends $4.8 trillion, a 21% and growing cash flow deficit that would alarm any business.  Government spending is 22% of GDP, much more than China. China’s GDP is rising faster than ours.  Our total debt exceeds our GDP. As our debt rises the strength of the dollar and reserve currency will be tested.
What will be sacrificed to pay the rising debt?  The DOD budget is $715 billion and many believe insufficient to deter a rising Chinese threat.  Social Security, Medicare and Medicaid ($2 trillion) costs are rising with a longer living population. When politicians say you’re not paying your fair share to the government perhaps the question should be “What’s a fair share for government to take” (is 50% - between federal, state, local tax fair)? From the out of control spending we are witnessing there will never be enough tax to offset unnecessary congressional spending. You would have to tax every family of four $60k to meet annual expenditures. Median household income is $65K. One way out is to increase GDP but policies are decreasing productivity and hampering innovation.