Should Americans Worry About the National Debt?

Fixing the national debt won’t be easy

November 2021

Script

This video is part of our Kite & Key Shorts series—easy to understand...but hard to forget.

 

Should Americans worry about the national debt?

As of 2021, the federal government has run up a $23 trillion credit card bill.i

That means that if we had to pay up today, every household in America would get a bill for more than $175,000.ii

And we’re on track to add another $112 trillion in debt over the next 30 years.iii

The main causes? Social Security and Medicare.

Why? Because these programs spend more on recipients than they take from taxpayers.

A typical couple on Medicare will get $3 of benefits for every $1 they paid into the system.iv

In fact, the entire increase in national debt over the next 30 years is projected to come from Social Security and Medicare.v

Finding a way to fix it…isn’t easy.

Tax the rich?

A 100% tax rate on incomes over $500,000 wouldn’t provide nearly enough money.vi

Cut the military budget?

Even reducing national security spending to $0 wouldn’t get us enough cash.vii

The only programs big enough to make up the difference are Social Security and Medicare themselves.

While we can save some money by running those programs more efficiently, it’s not nearly enough to close the gap.

Which likely means benefit cuts, tax increases that affect everyone — not just the rich — or, most likely, both.

Those are unpleasant choices, but the longer we wait to make changes, the more difficult they’ll become.

 

WHAT YOU NEED TO KNOW:

  1. As of 2021, we have $23 trillion in national debt — $175,000 per household.
  2. The main drivers of the debt are Social Security and Medicare.
  3. Even extreme measures like huge tax increases or abolishing the military aren’t enough to solve the debt problem.

Sources

  1. “Spending, Taxes & Deficits: A Book of Charts” (Brian Riedl), p. 15 — Manhattan Institute
  2. Ibid, p. 13
  3. Ibid, p. 14
  4. Ibid, p. 52
  5. Ibid, p. 34
  6. Ibid, p. 70
  7. Ibid, p. 69

Shownotes

SOUND: "Still Be Lovin' You" (R. Scott)

FOOTAGE: Karolina Grabowska (Pexels)

CITED SOURCES AND NEWS OUTLETS ARE NOT AFFILIATED WITH THIS PRODUCTION.

Sources

  1. Manhattan Institute
    “Spending, Taxes & Deficits: A Book of Charts” (Brian Riedl)
  2. U.S. Treasury
    Datasets
  3. Office of Management and Budget
    Historical Table 7.1
  4. Congressional Budget Office
    July 2021 CBO Baseline
  5. U.S. Census Bureau
    Population data from 1990 to 2020
  6. Congressional Budget Office
    2021 Long-term Budget Outlook
  7. Urban Institute
    Social Security & Medicare Lifetime Benefits & Taxes: 2020 (Erald Kolasi, C. Eugene Steuerle)
  8. Office of Management and Budget
    Historical Table 3.2
  9. Office of Management and Budget
    Historical Table 10.1

 

Delve Deeper

Bonus Content

More Videos

November 2021

Why Renewables Can’t Meet America’s Energy Needs

A country powered purely by wind and solar … will be a country that can’t keep the lights on.
Watch Now...

November 2021

The Weird History Behind the Holiday

Much of what you think you know about Thanksgiving may not be true.
Watch Now...