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2026-09-17 18:54:11
[Massive Debt Amid Non-Recession Period Raises Concerns About US Fiscal Path] ⑴ Despite ongoing discussions about fiscal responsibility, Washington lawmakers continue to push up the already high US debt burden. ⑵ The US annual deficit reached approximately $1.8 trillion in the first 10 months of the current fiscal year, and the remaining two months mean the full-year deficit will exceed $2 trillion. ⑶ In non-pandemic years, the US annual deficit has never exceeded $1.8 trillion. ⑷ The current economic growth, low unemployment, and lack of a national emergency forcing government intervention have led officials to describe this situation as "abnormal." ⑸ High borrowing costs are a major driver, with US Treasury yields hitting a 19-year high of approximately 5.3% this month. ⑹ As national debt continues to climb, creditors are more wary of the federal government's ability to repay, demanding higher returns. This means that nearly 20 cents of every dollar of tax revenue goes towards interest payments, higher than the previous record set in 1991. ⑺ The real problem lies in Washington's unrestrained spending spree. Democrats insist on more federal programs, existing welfare costs are constantly inflating, and the annual deficit continues to widen. (8) Federal spending increased by about 5% year-over-year this year, while revenue grew by only about 3%. (9) Last year's signature Republican budget reconciliation plan promised to cut government waste and maintain low tax rates, but failed to address the root causes of federal spending growth. Without serious welfare reform, tax cuts will only widen the budget deficit. (10) A nonpartisan organization estimates that the plan will increase the national debt by about $3.4 trillion over 10 years, reaching about $4.5 trillion including interest. (11) Tax cuts are a wise way to stimulate economic growth, but they must be offset by meaningful spending cuts; simply addressing the books will not fix the deficit. (12) Controlling the annual deficit requires looking forward, and the government is asking Congress to increase discretionary spending by about 19%, which would be the second-largest increase in at least 60 years. Lawmakers must comprehensively examine their reliance on deficit spending.
