{"id":2052230,"date":"2023-10-02T11:29:06","date_gmt":"2023-10-02T15:29:06","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-us-government-shutdown-is-not-the-problem-public-debt-is\/"},"modified":"2023-10-02T11:36:09","modified_gmt":"2023-10-02T15:36:09","slug":"the-us-government-shutdown-is-not-the-problem-public-debt-is","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-us-government-shutdown-is-not-the-problem-public-debt-is\/","title":{"rendered":"Public debt, not the US Government Shutdown, is the real issue."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-us-government-shutdown-is-not-the-problem-public-debt-is%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2052230&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>Commentary<\/h2>\n<p>There\u200b are hundreds of headlines all over \u200dthe news warning of the negative impact of a government shutdown. The negative impact on GDP, according to\u200b Bloomberg, is estimated at 0.5 percent\u200d of the quarterly\u200c annualized rate\u200d if the shutdown lasts for two weeks. Clearly,\u2062 that \u2064is an annualized rate, not the overall hit. The last \u2064government shutdown lasted between Dec.\u200b 22,\u200c 2018, \u200cand \u2064Jan. 20, 2019, and the United\u200b States economy still grew at a 2.2 \u200cpercent rate.<\/p>\n<p>The Biden \u2062administration has signed a stopgap bill to prevent a government shutdown and fund the expenditures for up to 45 days if there is no agreement. However,\u200d the entire debate is created around the monumental crisis that a shutdown would generate \u200dinstead of focusing on the cause: excessive deficit \u200bspending and soaring public debt.<\/p>\n<\/blockquote>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n<a href=\"http:\/\/www.theepochtimes.com\/article\/rising-treasury-yields-revive-fears-about-soaring-interest-payments-sustainability-of-public-debt-5107726?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>Rising Treasury Yields Revive Fears About Soaring Interest Payments,\u2064 Sustainability of Public Debt<\/h3>\n<p><\/a>\n<\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">3\/9\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\">\n<a href=\"http:\/\/www.theepochtimes.com\/article\/rising-treasury-yields-revive-fears-about-soaring-interest-payments-sustainability-of-public-debt-5107726?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n<\/div>\n<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n<a href=\"http:\/\/www.theepochtimes.com\/article\/global-public-debt-hits-record-92-trillion-un-report-5395991?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>Global Public Debt\u2062 Hits Record $92 Trillion: UN Report<\/h3>\n<p><\/a>\n<\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">7\/13\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\">\n<a href=\"http:\/\/www.theepochtimes.com\/article\/global-public-debt-hits-record-92-trillion-un-report-5395991?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Government shutdowns, like <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-budget-plan-would-raise-taxes-cut-deficit-by-3-trillion-invest-in-manufacturing\/\" title=\"Biden\u2019s Budget Plan Would Raise Taxes, Cut Deficit by  Trillion, Invest in Manufacturing\">debt-ceiling negotiations<\/a>, \u2062are seen in some countries as an\u200d anomaly and \u200beven an\u200b anachronism. The narrative seems to \u2064be that governments and \u2064the\u200c public sector should never have to\u2064 implement responsible \u200bbudget \u2064decisions, and spending must continue indefinitely. However, the problem in the\u2062 United \u200cStates is not the government \u200cshutdown but \u200dthe irresponsible and reckless deficit spending that administrations Republican and Democratic alike continue to \u200dimpose regardless of \u200deconomic conditions. \u2064When \u200dthe economy grows and\u2063 there is almost full employment, governments announce more spending because it is &#8220;time to borrow,&#8221; as economist Paul Krugman wrote. When the economy is \u200din recession, governments say that they need to spend \u2064even more to save the economy. In the process, \u200bgovernment proportion in\u200d the economy increases, and record tax receipts are fully consumed in no time because expenditures always exceed revenues.<\/p>\n<p>Those who\u2062 defend the science-fiction fallacy \u200cof modern\u200d monetary\u200b theory (MMT) say that if the government cuts the deficit, then the \u200cworld will run out of U.S. dollars and there will\u200d be a global \u200dmonetary\u200c meltdown. It is so ludicrous a notion that it should not even have to be discussed. The \u2063world does not run out\u200d of dollars if the U.S. government \u200dcuts its imbalances. Global dollar liquidity is a result of central bank swaps among monetary institutions. \u2062There is no \u2062such thing \u200cas a global dollar liquidity crisis because of a U.S. surplus, as \u200dwe saw when it happened in\u2063 2001. Furthermore, the idea that the dollar\u2062 supply is created only by government \u2064deficit \u200cspending is\u200d insane. This distorted view of the economy places government debt at the center of growth instead of private investment. It tries to convince you that a deficit is always positive and that\u2062 the only creation of currency must come from unproductive spending, \u200cnot from productive investment credit \u200cgrowth. Obviously, it is wrong.<\/p>\n<p>In the Biden administration&#8217;s own projections, the accumulated deficit between 2023 and\u2062 2032 would be\u2064 more than $14 trillion, assuming \u200bthat there would be no\u2064 recession or employment decline. Public debt has risen above $33 trillion,\u2064 and the budget\u2063 deficit in a period \u2063of growth and strong \u2064job creation is more than $1.7 trillion. As of August 2023, it costs $808 billion to maintain the debt, which is 15 percent of the total federal spending, according to the U.S. Treasury. Interest \u200brates are \u2063rising \u2063at the same\u200d time as \u2063the government rejects \u200call budget \u200cconstraints.\u200d This is a monetary timebomb.<\/p>\n<p>All empires\u2064 believe that their currency will be eternally demanded, until it stops. Global demand for U.S. dollars \u200bremains elevated, and the dollar index (DXY) is rising because the monetary imbalances \u200dof other nations are larger than the United States&#8217;s\u2064 challenges, \u2062and it still maintains freedom of capital and independent institutions with \u200dhigh investor security. But this does not mean that the government can do what it wants. When confidence in\u2063 the currency \u200bcollapses, the impact is sudden and unsurmountable. Global citizens may start to accept other independent currencies or gold-backed securities, and the myth of eternal U.S. debt demand vanishes. Unfortunately, governments\u2063 are always willing to push the \u2064limits of \u2062fiscal responsibility\u200c because\u2064 another administration will face\u200c the \u2064continuing same problem. The United States&#8217;s rising debt and deficit irresponsibility means more taxes, less growth, and more inflation in the future. \u2062Government debt is not a gift of reserves for the private sector; it is a burden of economic problems for\u2062 future generations. Sound\u2064 money can only come from fiscal responsibility. Currently, we have none.<\/p>\n<div class=\"my-5\">\n<em>Views expressed in this article are opinions of the author and do \u2064not necessarily reflect the views of The Epoch Times.<\/em>\n<\/div>\n<p> <\/p>\n<h2> How does excessive \u200bdeficit \u200bspending and soaring public debt impact future generations?<\/h2>\n<p><span>  Ent and\u200c entrepreneurship.<\/p>\n<p>The consequences of \u200bexcessive \u200cdeficit\u2064 spending and soaring public debt are \u200dsevere and far-reaching. First, it \u2063puts a \u200bburden on future generations\u200b who will have to pay off the \u200ddebt. As the debt accumulates, interest payments rise, which requires more tax dollars to\u200d be diverted towards debt servicing instead of being\u200d invested in education, infrastructure, and\u2063 other essential areas. This hampers long-term economic growth and limits opportunities for future generations.<\/p>\n<p>Second, excessive \u200cdeficit spending and public debt \u2062erode trust and confidence in the\u2062 government\u2064 and the\u2064 economy. Investors, both domestic and foreign, become \u200bwary\u200c of investing in a country with a high \u2062debt \u2064burden, fearing that it may lead to unsustainable \u2063fiscal policies, inflation, and economic instability. This can lead to a decrease \u200din foreign direct investment and a\u200d decline in the value of the national currency.<\/p>\n<p>Third,\u200d the reliance on deficit spending to stimulate\u200c the economy masks the underlying structural issues and impedes necessary reforms. \u200cInstead of addressing fundamental problems such \u2064as excessive regulations, inefficient bureaucracies, and barriers to competition, governments opt\u200c for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/charles-gasparino-jerome-powells-sappy-talk-on-banks-is-weak-after-multiple-collapses\/\" title=\"Gasparino: Powell's Weak Bank Talk After Multiple Collapses\">short-term fixes<\/a> through increased spending. This creates a cycle of dependence on government\u2062 intervention and perpetuates a culture of entitlement.<\/p>\n<p>It is high time that\u200b governments, including the United\u200d States, take a more responsible and sustainable approach \u2062to fiscal\u200b policies. This includes reducing \u2062unnecessary government \u200cexpenditures, implementing structural reforms to promote economic competitiveness, and fostering an environment conducive to\u2063 private investment and entrepreneurship. Only through these measures can we <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-us-government-shutdown-is-not-the-problem-public-debt-is\/\" title=\"Public debt, not the US Government Shutdown, is the real issue.\">ensure long-term economic prosperity<\/a> and secure the well-being of \u200bfuture generations.<\/p>\n<p>In conclusion, while government shutdowns may grab headlines, it is important to\u200b recognize that the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ex-press-sec-jen-psaki-takes-shot-at-old-white-politicians-thinks-will-hurt-bidens-chances\/\" title=\"Jen Psaki criticizes 'old' and 'white' politicians, fears impact on Biden's prospects.\">real\u200b issue lies<\/a> in excessive \u200cdeficit spending \u2064and soaring\u2063 public debt. The focus should not be on preventing government shutdowns, \u200cbut rather on\u2062 addressing the root causes of fiscal irresponsibility. It\u200d is only through responsible and sustainable \u200cfiscal policies that we can safeguard the economy and secure a better future for all.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>government shutdown in 2013 lasted for 16 days and cost the economy $24 billion, according to Standard &amp; Poor&#8217;s. The longer the shutdown, the greater the economic consequences. It is crucial for policymakers to find a solution and avoid further damage to the economy.<\/p>\n","protected":false},"author":2354,"featured_media":2052231,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2052230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2052230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2354"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2052230"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2052230\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2052231"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2052230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2052230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2052230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}