The below chart reveals that the amount of money the federal government spends on the interest it must pay on the federal debt is skyrocketing. It is quickly consuming an ever-increasing percentage of federal spending. It might ultimately crowd out other federal spending by necessity. Unless something is done very soon, it risks spurring inflation to intolerable levels and/or causing the debt to snowball even more quickly. This is not a sustainable situation. Check out the chart:
Interest on the debt in Q3 was an annualized $1.117 trillion – a new record
— E.J. Antoni, Ph.D. (@RealEJAntoni) October 30, 2024
While the pace of increase has slowed, it's still on track to hit almost $2.75 trillion by decade's end pic.twitter.com/OLevSC7FKI
A billion here, a billion there
Everett Dirksen, the American politician, once famously commented, “A billion here, a billion there, and pretty soon you’re talking about real money.” Through this simple yet powerful statement, Dirksen highlighted the significance of vast sums of money and their impact on the economy.
That’s right, Fred. And not only that, if no effective action is taken with regard to debt and interest, this particular trend could be disastrous.