Irresponsible spending is putting Americans at risk. The federal debt has reached $30 trillion which means a child born today in your family already owes $90,000.
–Amanda Adkins
Protecting Our Children and Seniors from Debt
Debt Today
In February 2021, the nonpartisan Congressional Budget Office projected the federal deficit (the shortfall between what the federal government collects and what it spends in a particular year) would reach $2.3 trillion in 2021. This figure – the second largest since 1945 – was derived before the latest round of COVID relief was signed into law, costing the country another $1.9 trillion.
As of March 1, 2021, the U.S. Treasury calculated the federal government debt at over $28.0 trillion. This means as a country we have spent close to $30 trillion dollars that we simply do not have. Debt now currently exceeds the entire size of the economy ($21.5 trillion) and we are on an unsustainable path on which the national debt is project to be 202% of Gross Domestic Product by 2051.
Debt by Household– What does it mean to you?
In order to pay off the national debt, every household in the U.S. would owe $216,933 – that’s $84,834 for every person living in America. Can you imagine coming up with an extra $200,000 in your household’s budget to pay for government’s misuse?
In recent years, the government has been operating without a budget. How can we control spending when there is not a budget in place? Whether we are managing for ourselves or our families, if we ran our families or our businesses in this same manner, we would be in grave trouble.
The Impact to Seniors – Cuts to Medicare and Social Security
The deficit and debt amounts are huge. Perhaps so daunting that many Americans – including elected officials – are choosing to ignore other commitments including those made to our seniors. The pandemic has accelerated the rate at which major trust fund programs, including Medicare and Social Security, will run out of reserves. We risk not being about to meet our Social Security and Medicare commitment with so much federal debt.
I am committed to America’s seniors and will fight to protect Social Security and the commitments made to retiring Americans.
Federal Spending by Category
Let’s look at Federal spending by category. Two of the highest areas of mandatory spending are important to our seniors – Social Security and Medicare.
Today, both are funded by Federal Insurance Contribution Act (FICA) tax rates paid by and employers and you the employee. Historically, Social Security has run a surplus allowing the federal government to reinvest funds. However, with an aging population and increasing healthcare costs, it is projected that by the early-2030’s there will not be enough money to pay full Social Security benefits.
Additionally, the Congressional Budget Office predicts the Hospital Insurance Trust Fund, which finances Medicare Part A, to become insolvent by 2024, meaning benefits to seniors would be cut by up to $1,000. Stated again, we will not have money in the trust fund to meet current Social Security commitments. In addition, rising spending on Medicare and Medicaid will contribute to an already large deficit, as both largely depend on federal revenue.
Where will this money come from? Left unchecked Sharice Davids and Joe Biden will choose to increase taxes on current and future generations, cut federal priorities including defense and national security spending, and they will not be accountable in reviewing other federal programs not achieving outcomes. Individuals and families in KS-03 deserve better.
The Risk to Future Generations
As we have seen in other countries like Greece, unrestrained debt results in inflation, high interest rates, low capital investments and the inability to invest in other priorities such as national defense, and infrastructure. This means future generations will experience lower incomes and a higher cost of living.
We cannot afford the policies of the Biden Administration that will further put the country into debt and increase dependency on the federal government. The Biden Administration used the pandemic recovery bill – The American Recovery Act – to pursue even greater expansion of Obamacare, which has little, if anything, to do with actual pandemic relief.
These provisions are projected to add an additional $34.2 billion to the deficit over the next two years. Included in this spending is a bailout of state governments in the midst of waste and fraud. The State of Kansas requested a bailout all while mismanaging unemployment insurance fund payouts to the tune of more than $600 million.
We owe it to the unborn generations and American seniors to get government spending in the right, responsible direction.
The Solution
Elected officials should be accountable for every dollar the government spends. A thorough analysis of all government programs is needed. We must analyze what is working and what is not. What can be done by the private sector should be privatized. What is better handled at local levels should become a state and local responsibility. Programs that are no longer serving needed and intended purposes should be cut altogether.
We must course correct now, slowly bringing much needed change to the spending policies that contributed to this national debt crisis.
About Amanda. As a business leader, Amanda has worked for a global innovation company headquartered in Kansas City. She knows what it takes to do business in the U.S. and abroad. Professionally, she advises providers and employers across the United States on how to cut healthcare costs and improve health outcomes for individuals and families. Amanda served on the Executive Committee of the Kansas Chamber of Commerce for 14 years. She also previously served on the Boards of The Salvation Army and The Entrepreneur Coalition.
www.AmandaAdkins.com