The debt keeps climbing. Some governments have avoided a deficit by printing more money to make up the difference. But excess money introduced into an economy leads to higher inflation and inevitably higher interest rates. Real debt reduction can occur only when federal outlays are less than federal receipts. That requires choices some of which may not be politically popular.
Few politicians have a willingness to face such choices.
While both Republicans and Democrats would allocate small portions of that projected surplus to debt reduction, their proposals aren t nearly large enough to significantly pay down the debt. The President has promised to veto the measure, but he would use more of the projected surplus to expand existing government programs. By hanging their hats on surplus predictions that may or may not be realized, both Clinton and Congress avoid the difficult choices needed to put our financial house in order. Meanwhile, the debt keeps climbing. Our weekly report is intended to remind us all of the inexorable tick of our national debt clock.