Last week the national debt pushed above $26 trillion.
Just 35 days ago, the debt eclipsed $25 trillion. And 28 days before that, the national debt stood at a “mere” $24 million.
Here’s some perspective. The debt first crossed the $2 trillion threshold in 1986. It took 210 years to run up a $2 trillion deficit. We just added another $2 trillion in just over two months.
And it barely even made headlines.
Remember when Republicans opposed stimulus? Remember when conservatives railed against government borrowing and debt? Remember the Tea Party?
Today, virtually everybody agrees that trillions in government spending is “necessary” to boost the economy through the COVID-19 government shutdown – Republicans and conservatives included. Everybody is a Keynesian now.
Here’s what’s even more disturbing; nobody seems to be asking the operative question. Who will pay for all of this?
I can answer that question: You will. You’re gonna pay for it. You. Your children. Their children. And probably generations to come. Because there is no end to the borrowing and spending in sight.
So, enjoy that stimulus. You will either pay for it in higher taxes real taxes or inflation — probably both.
People often say I should quit talking about the debt. After all, it’s gotten up to $26 trillion and nothing bad has happened. It’s true. Somehow they’ve managed to kick the can down the road for decades. But here’s a truth – what can’t go on forever doesn’t. The problem with kicking the can down the road is you eventually run out of road.