Inflation-Fighting Fiscal Responsibility U.S. Amendment
Soaring National Debt
In January of 2022, Federal Reserve Chairman Jerome Powell warned, “…We’re on an unsustainable path. Debt is not at an unsustainable level, but the path is unsustainable meaning it’s growing faster than the economy, meaningfully faster than the economy. We have to address that over time. We will address it over time. And the better way to do it is soon.”
However, the soaring inflation rate over the last year is just the latest symptom of an underlying debt crisis. Hensarling points to a debt to GDP ratio of 119%, a threat to the dollar as the world’s reserve currency, as well as underfunded and failing trust funds like Medicare Part A and Social Security which will run out of money in 2026 and 2033 respectively.
“We’ve had years of denial, delay and neglect in confronting the unsustainable national debt,” said Hensarling. “Today’s high rate of inflation is simply a foreshadowing of what could come if the U.S. is forced to monetize the bulk of its national debt. Reduced economic growth, a diminished national defense, insolvent social safety-net programs and recession loom as well.”
Read Debt and Inflation Threaten U.S. Security in the Wall Street Journal