Our national debt is now more than $14 trillion and is about to hit the current legal limit of $14.3 trillion. By the end of this decade, without serious fiscal reforms, our national debt is on track to reach nearly $20 trillion--approximately $170,000 for every family in America.
Although almost everyone seems to agree that this huge debt is bad, Congress hasn't really done anything about it. One reason might be that the actual consequences of such a rapidly growing debt are not generally understood. These real life adverse effects include:
* Increased Taxes
To be able to pay its bills as the debt increases, the federal government will have to borrow more, cut spending or raise taxes.
* Loss Of Independence
As the U.S. debt to other nations increases, we risk losing our standing on the world stage and influence to our foreign creditors.
* Compromised National Security
As cash-rich nations are able to fund better military capabilities, they will be able to exercise greater influence over countries with weaker militaries, thereby potentially affecting our national security interests around the world.
* Loss Of Jobs
As creditor nations are able to purchase ownership stakes in U.S. companies and taxes increase, more jobs are likely to leave the U.S.
Any of these adverse consequences alone or in combination obviously present a significant problem for our country going forward. The solution is obvious--we simply need to reduce federal spending and use the cost-savings to pay down the national debt.
As your Congressman, I will fight for real spending reform to reduce the national debt and get our country on the right track toward fiscal responsibility and economic growth.