According to the U.S. Treasury’s fiscal data, the country’s total public debt hit $32.659 trillion on July 27, an increase of $392.75 billion compared to last month.
The Federal Reserve Bank of St. Louis said that the surge has brought America’s quarterly interest payments on its debt to nearly $1 trillion.
According to the Cato Institute, the country’s ever-expanding debt is now an issue of national security.
“Delaying responsible fiscal reforms in the face of growing federal debt invites economic and national decline. High and rising U.S. federal debt leads to suppressed private investment, reduced incomes, and increased risk of a sudden fiscal crisis,” wrote Romina Boccia and Dominik Lett in a blog post.
Entitlement reform is imperative, given that Social Security, Medicare, Medicaid, and other needs-based programs currently account for half of the federal budget, the authors noted. At the same time, defense spending constitutes one-fifth of the budget, they added.
“National defense is a core responsibility of the federal government. To maximize Americans’ safety and prosperity, prudence should guide strategy and the budget. A dire fiscal crisis would erode the economic foundation of America’s strength, limiting U.S. capacity to defend its vital interests at home and abroad,” Boccia and Lett explained.
The authors urged U.S. lawmakers to establish a debt commission addressing entitlement reform, proposing that the commission’s recommendations automatically become law upon the president’s approval.
“A well-designed commission will be composed of a diverse group of experts, guided by clear goals established by Congress, and whose recommendations will be self-executing after Presidential approval, benefiting from so-called fast-track authority,” they wrote.
“Unsustainable fiscal policy imperils American economic and military strength. By reforming entitlement programs and reducing spending, legislators can prevent high debt from undermining America’s prosperity and security. A well-designed debt commission can help Congress to see this through,” Boccia and Lett argued.
Produced in association with Benzinga
