The Debt Crisis: A Looming Threat

Ross Perot's Warning

In 1992, Ross Perot ignited a political firestorm with a simple but alarming message: America's national debt was out of control, like a "crazy aunt in the basement" everyone ignored.

"The first rule of bureaucracy is protect the bureaucracy." — Ronald Reagan

The Debt's Dizzying Growth

Since Perot's wake-up call, the national debt has skyrocketed from 46% of GDP to an astounding 123%. Our government is now accumulating debt at a staggering rate of $6.6 billion per day.

Key Takeaway: America's debt-to-GDP ratio is at its highest level since World War II, with no end in sight.

Shifting Spending Priorities

Disturbingly, government spending is increasingly focused on short-term consumption rather than investments that fuel future economic growth, such as education, research, and infrastructure.

"It would be madness to try to provide for the future by impoverishing the present." — John Maynard Keynes

The Debt Interest Trap

For decades, historically low interest rates have masked the true cost of our debt. But the party's over, and the bill is due: Washington is now spending nearly $1 trillion annually on debt interest alone, more than on defense.

Key Takeaway: The government is redirecting vital resources away from critical areas to service its unsustainable debt.

The Trust Fund Timebomb

Social Security and Medicare, the primary drivers of the debt, are facing imminent crises. Without reforms, Social Security's Trust Fund will be depleted by 2034, while Medicare's will run dry by 2036.

Key Takeaway: These essential programs are on the brink of collapse, threatening the well-being of our elderly and disabled.

The Debt Ceiling Farce

The debt ceiling, once a tool to control spending, has become a political game, allowing minority parties to blackmail the government and threaten the nation's creditworthiness.

"If this isn't democracy, it's the best imitation yet devised." — H.L. Mencken

The Solution: A Bipartisan Commission

A bipartisan fiscal commission, like those led by Alan Greenspan and Simpson-Bowles, can provide a platform for honest and productive dialogue, free from political grandstanding.

Key Takeaway: Only a collaborative effort involving experts can forge a sustainable solution to the debt crisis.

A Call to Leadership

As Ross Perot demonstrated, true leadership means confronting uncomfortable truths and guiding the public towards solvency. Cynics may doubt our ability to resolve this crisis, but history teaches us that times of upheaval can pave the way for profound change.

"It isn't as bad as you think. It's worse." — Alan Greenspan