May 30, 2023
The National Debt is a monstrous cloud hanging over the United States. It is money owed that is not being repaid, but growing each year.
As of May 25, the National Debt stood at $31,800,000,000,000 ($31.8 trillion). That is a number so huge that it is difficult to understand.
The U.S. Census Bureau tells us that as of July 1, 2022 there were 333,287,557 U.S. citizens. That means that for each citizen — man, woman and child — there is about $94.00 of debt, and about $430.00 per person 18 years-old and older.
Having a National Debt is not new. Its history is a fascinating thing to study.
There was a National Debt when President George Washington, took office in 1789. It was slightly more than $71 million. And, it increased by 11 million during his term that ended in 1797.
Most of our presidents have seen the Debt increase during their terms in office, although 12 had a decrease in the Debt when they left office: Thomas Jefferson in 1809; James Monroe in 1825; John Adams in 1829; Andrew Jackson in 1837; Millard Fillmore in 1853; Franklin Pierce in 1857; Andrew Johnson in 1869; Ulysses S. Grant in 1877; Rutherford B Hayes in 1881; Chester Arthur in 1885; Grover Cleveland in 1889; Benjamin Harrison in 1893; Warren Harding in 1923; and Calvin Coolidge in 1929.
Two presidents saw no change. James Garfield was assassinated during his first term after only 200 days in office. And after only 31 days in office, William Henry Harrison died.
It has been more than 90 years since the Debt was lowered under Coolidge. The reduction was $5.4 trillion for a total Debt of $16.9 trillion, slightly more than half of today’s Debt.
Since then, every president — 16 of them — has seen an increase during their time in office.
While things that a president does can affect the Debt, sometimes things beyond his control cause an increase. Factors like wars, recessions and national crises can affect the Debt. A recent crisis was the Covid pandemic. Another was the 9-11 attacks on the Twin Towers and the Pentagon that led to spending that was not planned.
Also, because the U.S. fiscal year begins in October and ends the following September, and presidents take office on January 21, during most of a president’s first year in office, he is at the mercy of his predecessor’s budget.
The Debt Ceiling is the limit on borrowing that can be done, and Congress has control of it. It is part of a law (Title 31 USC, section 3101) that sets a legislative limit on the amount of national debt that can be incurred by the U.S. Treasury.
When the debt ceiling is reached, as it often is, these days, the President and Congress must work toward an agreement on raising it. If they succeed, the government can borrow more money to meet its obligations. If not, a government shutdown occurs until an agreement is reached. The latter option is not really a viable one.
For the last nine decades the National Debt has continued to rise. The smallest increases since Coolidge’s lowering of the Debt in 1929 are from three consecutive presidents who served from 1981 to 2001: Ronald Reagan at $1.86 trillion; George H.W. Bush at $1.55 trillion; and Bill Clinton at $1.4 trillion.
Since Clinton’s tenure, the next three presidents have seen larger increases: George W. Bush at $6.1 trillion; Barack Obama at $8.3 trillion, and Donald Trump at $8.2 trillion. Joseph Biden has seen the Debt increase by $2.5 trillion in his two-plus years in office.
In December of 2022, interest on the National Debt — which at that time was $31.4 trillion — was $210 billion, roughly 15 percent of total government spending for the year, according to Visual Capitalist online.
“The current revenue of the federal government is approximately $4.6 trillion while spending exceeds $6.0 trillion,” Forbes online reported in April. “Thus, the current budget deficit is over $1.4 trillion. It’s clear that members of Congress are spending like drunken sailors and like the Titanic, the U.S. is on a collision course with a financial iceberg.”
The article goes on to say that high interest rates make this situation worse for the government to meet its financial obligations. Meanwhile, politicians seeking reelection prefer to keep spending.
The Republican-led House of Representatives passed a measure to raise the Debt Ceiling, but also to make significant spending cuts. Speaker Kevin McCarthy, R-CA, and President Joe Biden have been meeting trying to reach an agreement.
Hopefully, by the time this column is published, an agreement will have been reached.
At some point, elected members of Congress and the President of the United States must recognize that this unconscionable spending must stop, and the country must trim down, and develop a budget that pays current obligations and begins to pay down this humongous debt.
Our country was designed to be small, efficient, and non-intrusive. A government that protects the freedoms of its people, would not intrude on their good lives, and would not grow into the gargantuan monstrosity it has become. That is what the government needs to again become.
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