The United States faces many challenging problems but the biggest one of all is our national debt, right now 77% of GDP, the largest since right after WWII, and predicted by the Congressional Budget Office to keep getting steadily worse without major changes in current policy.
The only practical way to reduce the debt is to start shrinking our annual deficits, $680 billion for the current 2017, down to a much lower level, ideally close to zero, over a limited time period, perhaps ten years or so. This urgent need will, of course, be very difficult to accomplish.
- Military spending. The military analyst, Mark Helprin, makes a cogent argument that the most effective way to defuse the North Korean nuclear threat is for President Trump to ask Congress “for an emergency increase in funding to correct the longstanding degradation of American military power.” This would, among other things, provide for “a vigorous acceleration of every aspect of ballistic-missile defense.”
- Omaha Rapid Bus Transit. Omaha NE (where I live) is spending $15 million in local funds for a $30 million bus system upgrade, subsidized by the Federal Transit Authority, which has an annual budget of $8.6 billion. The new ORBT will have sleek 60 foot-long buses as well as 27 individual modern bus stop shelters at a cost of $260,000 each. The system will be operational in 2018 and Mayor Jean Stothert says, “I’m looking forward to being one of the first riders.”
Conclusion. Who can argue with upgrading ballistic-missile defense at a time when we are threatened by a madman in North Korea? And, it is nice for Omaha to have a sleek modern rapid transit bus system on Dodge Street but should it be 50% subsidized by the federal government at a time when the U.S. is drowning in debt? There will always be enormous pressure on Congress to increase funding for popular projects.
Who is going to stand up and say no?
Clearly, our Nation’s sustained role as its peace keeper will only get worse as our world-wide population approaches 10 billion in 40 years. The advance in the unknowns of global warming would be mainly its further aggravation of our nation’s stability. I vote for world peace and our nation’s unfunded liabilities.
As the world’s main superpower we will automatically be the target of all rogue countries like North Korea. I call this a “routine” type problem for us to deal with. Long term debt, on the other hand, is a creeping, insidious problem which will just get worse and worse (if unaddressed) until one day there is a huge new crisis which will cause great pain to solve, far worse than the Financial Crisis of 2008.