// 845.371.2222 NATIONAL DEBT substantial and increasing expense for the government. Paying off the entire national debt would require extreme measures, such as massive spending cuts, huge tax increases, or both. It can be risky, and cause many problems. Instead the government focuses on managing the debt, - making sure that the interest is paid and the economy is growing. Let us return to our simple example used at the start of this article. Suppose you want to pay the debt of $24,000 that you have accumulated in the year 2024. How would you do it? • You would try to find a way to earn more money. • You would try to spend less money. Experts agree on basically the same strategy to decrease U.S. debt: • Slowing the growth of spending – This includes: reforming major programs like Social Security and Medicare. • Increasing earnings – This includes: Encouraging economic growth, and making the tax system more efficient. Getzel was depressed. Life dealt him several harsh blows, and it affected his mental state. As he walked the streets, unkempt, and unhinged, people shook their heads sadly. How had this happened to such a smart, talented person? Boruch was worried. Getzel owed him a lot of money. Is it time to bid good – bye to that money? Will he ever pay him back? He went from one person to the other in Shul asking: “Is Getzel paying off his debts?” “We don’t think so” several friends answered him “Getzel is not that unbalanced…” Uncle Sam owes a huge sum of money to many debtors. Economists and experts have discussed it endlessly, and offered different solutions. We have yet to see any of them implemented, for Uncle Sam is not so quick to pay his debts. He is not that unbalanced… • The U.S. has had debt since its inception. The American Revolutionary war was costly! The debt grew and grew until 1835, when it was almost totally paid off. An economic depression brought it right back. • Wars have caused large spikes in the national debt. The Civil War demanded many lives and lots of money. It increased the debt significantly, and it grew to about $22 billion after World War I. • The 20th Century saw the debt rise like a neglected Challah dough. Social Programs, and World War II contributed to its growth. • The last time the U.S. had a budget Surplus was in 2001. It didn’t hold. Since then the national debt has mushroomed, spiking during the 2008 Great Recession, and the COVID – 19 pandemic. • Stimulus programs, decreased tax revenues, and high unemployment, were among some of the factors “stimulating” the recent spurt of the national debt. • An accusing finger can be pointed to the Biden administration. From FY 2019 to FY 2021 federal spending increased by about 50%... This was in response to the COVID – 19 pandemic, and caused the debt to grow with the lions’ part of the increase occurring during president Biden’s term. 135
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