U.S. debt has increased more rapidly than national income for more than half a century, creating what is often termed “debt fatigue.” The Congressional Budget Office reports that federal debt held by the public as a share of GDP increased to 98 percent in 2022 and is projected to increase to 185 percent by 2052, implying that Americans’ debt fatigue will only worsen. The fiscal rules enacted by Congress to constrain debt have clearly failed, and the federal government has virtually abandoned any semblance of a rules-based fiscal policy. Indeed, the debt ceiling has been routinely lifted or suspended, and the spending caps imposed by the 2011 Budget Control Act have been largely flaunted and were allowed to expire in 2022.
Steve H. Hanke, Barry W. Poulson
January 9, 2023
It’s Time to Put a Brake on the Debt-Ceiling Charade
[Most sources put the ratio about 120% or higher,
The debt “ceiling” is a total joke.
Prepare appropriately.—Joe]