This year the US will spend about 240 billion dollars on interest on the national debt. That is about 7% of all government revenues. By 2021 it is predicted that we will spend about 576 billion dollars on interest on the money we have borrowed. That will be about 12.5% of all government revenues.This is a disaster and will bankrupt America. Our country has never gone more than 10 years without a recession. If we make it to the end of this decade without one, that will be a new record. When the next recession occurs, it will drive the deficit up. Also, interest rates will not stay at historically low levels forever, and baby boomers will be retiring in massive numbers. This will be the “economic perfect storm” of bad news. At some point during the next decade, we will be spending ONE TRILLION DOLLARS A YEAR ON INTEREST ON THE NATIONAL DEBT. This is not sustainable, and we will be essentially bankrupt.
The population in 1996 was about 265 million, in 2014 it was over 317 million. So I calculated spending increases over 1996 by the CPI plus 25% for Agriculture and Health and Human Services. All the rest are 1996 plus CPI. THESE CUTS ARE IN BILLIONS. State Department budget would be cut to 3 billion dollars.
TOTAL CUTS: 853 billion
Eliminate Foreign Aid.
Eliminate programs like National Endowment for the Arts.
Cut pay of civilian federal workers: No cut on first $100,000—-25%—-for next $100,000—-50% for all money over $200,000. Currently over 17,000 federal workers make over $200,000 a year.