Us Hits $38t in Debt. Fastest Accumulation of $1t Outside Pandemic

All your base are belong to US

But still, bravo

The top decile of the wealth distribution is around $1M net worth.

The people doing the borrow-for-spending-against-non-housing-assets-as-collateral are beyond the top .01%. While they are also spending whales, they are able to negotiate far more favorable rates than the rest of the top 10%, whose spending is mostly income-driven.

https://www.marketplace.org/story/2025/10/23/why-you-should-...

Often politicians will try to shrink or control the debt without deeply investiagting the true causes, because the real causes may be politically inconvenient.

That's not really the case with a nation-state with sovereign control over their own monetary policy. In that case, currency works a lot more like an MMO currency like RuneScape gold. The government gets to set up sources (government spending, killing goblins), and sinks (taxes, buying stuff from in-game shops), with the risk of screwing up the balance being a shift in perception of value of the currency. Just like how I never need to worry that RuneScape will run out of gold, and the next goblin I kill won't drop any, the government can't run out of money. It can always print more. Taxes are used to induce a demand for the currency (since you need to pay your taxes in USD), creating a flow of money through the economy. Tax too much, or print too little, and you make people expect the money to gain value, and shrink the value proposition of investment compared to hoarding money. Print too much, or tax too little and you end up with money piling up in some subset of your participant's balance sheets, shifting people's expectation to the money being worth less in the future, leading to a devaluation of said currency (since the people with a bunch of money are willing to spend more of it for the same good).

The key is that whole "expectation of future value" element, which differentiates government debt from private debt. It's a much looser coupling than "I have 45 cents in my bank account, I can't buy groceries this month". A currency can be useful, valuable, and perfectly suitable even if it loses a couple percent of its value every year, forever. That would reflect as a forever increasing national debt, but it's fine, because national debt doesn't matter.

Unexpected changes to the rate of change of the national debt is the thing that matters, and even then only indirectly, by way of the public perception of the value of the currency, which leads to the inflation/deflation rate.

Taco bell seems ridiculous but the alternative is that they eat cat food.

The wealthy boomers who own multi-million dollar California track homes and don’t pay taxes because of prop 13, who are consuming millions on quasi-necessary medical procedures because they partied too hard in the 70s, gorged on trans fats in the 80s, smoked drank and didn’t go for walks, that’s where entitlement reform should start. But those are the base of one, maybe both parties and will vote out anyone that refuses to subsidize their ozempic and knee surgeries. They will even vote to reduce democracy by gerrymandering the state to block third party candidates and ensure nobody can come for their unnecessary health care costs and other ballooning entitlements.

Corporate taxes are levied on profit, not revenue. Raising corporate taxes would not cause any businesses to fail. And businesses can only raise prices if the market will bear those higher prices. Prices are set based on what customers will pay, not on what profit margin the company wants.

Letting 70M+ Americans, many of which are children, go hungry is good for the country because it saves money. And if they don't die from malnutrition, don't worry, we're going to save even more by cutting their health coverage, and eventually social security, a program that people paid into their entire lives.

Take a step back...do you believe these 70M+ people are just lazy, inept, ...? Do they deserve to suffer, especially the children? What are we buying with their suffering? A reduction in spending? A tax break for the wealthy? Is this the only solution?

What if we were to create a real national healthcare system which cared for everyone at a vastly lower cost? That would also save money AND reduce suffering. Seems like a net win.

But that won't get us all the way there, so what else can we do? Everyone knows the answer, increase taxes on the wealthy. Top marginal tax rate used to be 90% (1950-1964), so perhaps there's some wiggle room between that and today's 37%.

Historical Tax rates: https://thesocietypages.org/socimages/files/2012/12/1.png

This country needs a big old heaping of empathy and compassion.

But such regulations are easily subverted and ultimately may not make a lot of difference. If people want to live on Dr. Pepper and cigarettes they will find a way to do that.

You castrate the media, and take control of major vehicles to tilt the balance in your favour in quasi-sham elections; accumulate power in the executive while keeping the remaining seats of power under the thumb of the branch: legislative gets installed with sycophants/acolytes, judiciary power is tamed/dimished and regime-adjacent judges installed.

If you play this well you keep getting elected when elections happen and slowly twists more the sword into all democratic institutions.

[0] https://www.journalofdemocracy.org/articles/the-new-competit...

It would eliminate the notion of the USD as the basis of foreign trade across the world, almost all of the finance system is supported by the USD being the safest investment available.

Eh, I would say its well-known in deficit circles that all politicians (intellectually) desire to balance the budget, but it is basically impossible. Social Security, Medicare/Medicaid, and debt servicing are such large pieces of the debt pie that the entirety of discretionary spending makes basically no impact in balancing the budget. These are de-facto untouchable obligations because too many people's lives depend on them and any party that enacts austerity will be swept out of office. Neither party will increase taxes on themselves (the rich) and taxing the middle/poor guarantees you lose the next election. The only path forward in the U.S. is basically kicking the can down the road until it implodes like so many other high debt-load western nations before them.