The Big House Fight to Come Will Be the Debt Ceiling

The Big House Fight to Come Will Be the Debt Ceiling
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J.G. Collins
Updated:
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Commentary
Last week’s struggle in the House of Representatives to select Kevin McCarthy (R-Calif.) as speaker of the House is probably the most contentious House battle most of us will see in our lifetimes. But there is another one coming that is far more important: the battle over the debt ceiling, which will be looming over Congress late this summer or early fall.

Background

The United States is $31 trillion in debt; that’s more than 120 percent of the annual U.S. gross domestic product (GDP). Projections show that spending will exceed revenues by at least $1 trillion per year, every year, for at least the next 10 years. While the debt-to-GDP ratio has decreased from pandemic levels—and the ratio was exacerbated due to the pandemic recession decreasing GDP—it still remains well above pre-pandemic levels—levels that were, even then, historically high. Moreover, neither the debt nor those trillion-dollar a year projections take account of U.S. obligations for entitlements like Social Security and Medicare, which are funded through their respective trust funds and which are also fiscally unsustainable.
J.G. Collins
J.G. Collins
Author
J.G. Collins is managing director of the Stuyvesant Square Consultancy, a strategic advisory, market survey, and consulting firm in New York. His writings on economics, trade, politics, and public policy have appeared in Forbes, the New York Post, Crain’s New York Business, The Hill, The American Conservative, and other publications.
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