Former U.N. ambassador and Republican presidential candidate Nikki Haley is raising concerns over what she calls an “unacceptable” level of U.S. national debt, taking shots at her own party in the process.
Interest Costs Now Exceed Defense And Medicare
On Wednesday, Haley posted on X, highlighting the fact that the national debt has now risen to $37 trillion. “To add insult to injury,” she says, “we will spend $1 trillion on interest this year alone.”
Haley notes that this interest payment on the national debt has now risen to become “the second largest expense in the U.S. budget, surpassing defense and Medicare spending.”
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She accused the Republicans of abandoning their commitment to fiscal conservatism, saying, “Republicans are supposed to be the Conservative Party,” before concluding by saying that “Our kids and grandkids aren't buying it.”
US Adds $1 Trillion In Debt Every 5 Months
The national debt crossed the $37 trillion mark this week, according to a report by the U.S. Treasury Department. This milestone was hit years before the 2030 pre-pandemic projection by the Congressional Budget Office (CBO).
The sharp rise in debt has been attributed to the multi-year COVID-19 pandemic, when the government borrowed heavily to support the national economy. According to the Peter G. Peterson Foundation, the U.S. continues to add $1 trillion to its debt pile every five months.
Chief Economist at Deutsche Bank, Jim Reid, predicted a few months ago that the U.S. would experience “death by a thousand cuts,” as a result of its deteriorating fiscal health.
Billionaire hedge fund manager Ray Dalio expressed similar concerns, saying that the escalating debt crisis could lead to an impending “economic heart attack” if not dealt with right away.
“We’re spending 40% more than we’re taking in, and this is a chronic problem,” he said, comparing the rising debt service payments to “plaque in the arteries squeezing away buying power.”
Photo Courtesy: Lev Radin on Shutterstock.com
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