It is no secret that America’s national debt is tremendously high. As of October 2024, we are in a $35.7 trillion hole that we need to climb out of. This roughly equates to $106,000 per person in the country. Recent polling revealed that more than nine in 10 swing state voters say that it’s important for the next president to have a plan for the national debt. In April 2024, U.S. Bank estimated that the federal government was on pace to acquire $1 trillion in new debt every 100 days.
Of great concern is that the national debt is currently growing quicker than the overall national Gross Domestic Product (GDP). Over the last 10 years, the national debt rose 86%, while the GDP grew by 63%. In the past decade, the federal government has drastically increased the debt held by the public.
A little over 30% of the U.S. debt is now held by foreign governments. Japan holds the most, at $1 trillion, with China right behind them at $859 billion, and the United Kingdom third at $728 billion owed. Other foreign governments that hold less than $500 billion of America’s debt include Luxembourg, Cayman Islands, Canada, Belgium, India, Ireland, and Switzerland among many others.
This debt is on track to double within the next 30 years. The largest contributors to this debt are mainly mandatory spending programs such as Social Security, Medicare, and Medicaid. The Manhattan Institute predicts that Social Security and Medicare will make up 80% of the federal deficit increase in the next 8 years.
The COVID-19 pandemic also has had a massive effect on this problem. The pandemic-related stimulus checks and aid for businesses and local governments increased the national deficit by $3.1 trillion in 2020.
Recent federal legislation has also had a massive impact on debt as well. The Infrastructure Investment and Jobs Act passed in 2021, is estimated by independent economists to add $250 billion to the federal deficit over the next decade. Due to the Inflation Reduction Act, CHIPS Act, and Infrastructure Investment and Jobs Act, the U.S. will also be spending around $500 billion over the next 10 years on climate-related policies.
America’s interest on its debt is also very troubling. Every day, the U.S. government spends $2.4 billion on interest alone. It is also estimated that in 2023, the U.S. spent $429 billion on interest, which is 240% of what the government currently spends on transportation, housing, and commerce combined.
Due to the ongoing Congressional inaction on this massive federal spending and debt problem, there were multiple resolutions introduced on this topic during Idaho’s 2024 legislative session:
SCR 112: “This concurrent resolution is an application to Congress, under the provisions of Article V of the Constitution of the United States, calling for a convention of the states, the purpose of which is to propose amendments to the Constitution of the United States that would be limited to: (1) imposing fiscal restraints on the federal government; (2) limiting the power and jurisdiction of the federal government; and (3) limiting the terms in office for its officials and for members of Congress. Currently, identical applications have been sent to Congress by other state legislatures.”
SCR 115: “This Concurrent Resolution recognizes the growing national debt as a legitimate threat to the United States of America and calls upon the United States Congress to send to the states for ratification, a Balanced Budget Amendment to the United States Constitution. In the absence of such action, after a date certain, the Idaho Legislature files application for an Article V Convention for the sole purpose of proposing a Balanced Budget Amendment to the States for Ratification.”
Idaho Gov. Little also discussed this issue in his 2024 State of the State address: “I am signing on as a member of the Governors Debt Council for a Balanced Budget Amendment to the U.S. Constitution. The runaway freight train of federal spending has got to stop. It’s not right. It’s not what the founders envisioned for our great country. The U.S. Constitution gives the states the power to propose a Balanced Budget Amendment, and in the coming weeks I will announce new steps we’ll take to force Congress to live within the people’s means.”
Despite the clear need to address this growing debt problem federal officials have consistently failed to act. This is why many budget reformers across the country are now calling for a convention of the states. Congress has shown that it is not capable of enacting the reforms needed to change the course of runaway federal spending. That duty now falls on the states to secure the nation’s economic outlook for continued prosperity.
