Sometimes it’s hard for those who live in the real world to understand how things that happen in Washington affect us. The hottest debate in Washington is whether or not to raise the nation’s “Debt Ceiling.”
What’s the big deal?
When the government has more bills than money, it borrows money from other countries and sources to make ends meet. Since 1960 the country has had to borrow money over 80 times. Right now, the government owes $30 trillion. How big is $30 trillion? It’s so big that it almost takes a calculator to count the zeros of $30,000,000,000,000.
How much is that? It’s so big that spending $100 million a day will take you 822 years to spend $30 trillion dollars.
The last time the country had enough money to pay its bills with a little left over for rainy days was during the Clinton Administration. Beginning in 1997, Clinton left surpluses that began at $50 billion and topped out at $200 billion when he left office in 2001. Of course, Clinton increased taxes and cut a lot of spending to make that goal.
When George Bush took over, the country started spending billions on the Iraq War while cutting taxes simultaneously. Every year afterward, we spent more and borrowed more.
The result is $30 trillion in debt since the year 2001.
Raising the debt ceiling means Congress wants to borrow more money to keep things going.
The Democrats want to borrow more without any conditions like cuts to programs or spending. The Republicans want to borrow more but cut some of the spending.
Both Republicans and Democrats want to borrow more; they argue over the details.
While arguing, many folks back home will feel the effects if they don’t agree to borrow more money by June 1.
Social Security checks may be delayed (They won’t be cut out but won’t hit the bank on time).
Soldiers and veterans won’t be paid on time, either.
For African-Americans and people experiencing poverty, the standoff can lead to cuts in government programs that disproportionately benefit Black Americans, such as Medicaid, food stamps, and housing assistance.
Second, it can decrease the availability of jobs, as businesses may be forced to lay off workers to save money.
The residual effects will reach every small city like ours because if they wait too long to raise the debt ceiling, it can lead to increased crime as people become desperate and turn to crime to survive.
A study by the Center on Budget and Policy Priorities found that a government shutdown will disproportionately impact Black Americans, with 2.2 million Black Americans losing their jobs and 1.5 million Black Americans losing their health insurance.
We must watch how much we put in our shopping baskets, especially if we don’t have enough to pay at the checkout stand.
Iraq and Afghanistan war cost? $8 trillion. Cha-Ching!
Rebuilding Iraq and Afghanistan after the wars? $60 trillion. Cha-Ching!
War support for Ukraine? $75 Billion and counting. Cha-Ching!
Rebuilding Ukraine after the war ends? $600 Billion (World Bank estimate). Cha-Ching!
Congress must reach a budget agreement as soon as possible to avoid these negative consequences.
Folks, when you hear of debt ceiling fights, national debt, wars, and rumors of wars, it affects you locally.
The “Cha-Ching” sound you hear won’t mean money you are making, but more taxes you will be paying!
