Issue Spotlight: Our National Debt

by Dan Seals

This fiscal year, the U.S. government is already running a $1.6 trillion budget deficit and our total national debt has risen to more than $13.2 trillion. That’s $42,000 of debt for every woman, man, and child in America. This is more than a bankroll problem–it is a national crisis. With this growing debt, we stand to be the first generation to leave our nation in worse shape for our children. As the father of three young daughters, I refuse to let that happen.

The federal government should use the same fundamental budgeting process as all households: you can only spend what you can afford. Millions of Americans live within their means every day, and so should our government.

But unfortunately, the reality is far from this simple ideal. We borrow to spend–and we’re not borrowing from friends. We owe billions in debt to nations like China, which are willing to bankroll our dangerous spending practices. That not only puts our fiscal sovereignty at risk, but also reduces our influence abroad.

Like all American households, the federal government cannot live beyond its means forever. Eventually, our rising debts will come due, and these debts will be paid for by our children in the form of higher taxes and a weakened economy. We cannot continue to mortgage the fate of future generations with irresponsible spending today. We need a government that we can afford.

So what can we do?

The first step is setting our economy on the road to recovery. A growing economy produces more tax revenue, which will allow us to pay down the debt more aggressively. President Clinton was the only president in recent times from either party to reduce the debt and he did it in part through strong economic growth.

Second, we have to reduce our spending. I have called for cutting the number of federal contractors; bringing down agricultural subsidies to wealthy farmers; and eliminating the no-bid contracts that encourage wasteful spending; among others. But with 435 members in the House and 100 Senators, getting agreement on cuts will be difficult. That’s why I believe the President’s leadership is vital. He must strongly consider the recommendations of the bipartisan National Debt Commission to lay out a clear and reasonable path to fiscal sanity that we can rally around. Otherwise the Congress will dissolve into the partisan bickering that we are all tired of.

Third, we must fully commit to pay-as-you-go budgeting practices. The concept is relatively simple: for every new expense, you must find a spending offset. You pay as you go and don’t spend money you don’t have.

Some say that we as a people aren’t up to the challenge. They say that the government’s debt problems are just a reflection of a “buy now, pay later” attitude that pervades our entire culture. I disagree. We are up to the challenge. Household savings rates have increased dramatically and there is no reason why our government can’t do the same. We have to. Our future prosperity depends on it.

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