National debt rivals border crisis as Trump’s greatest challenge

By ELISE M. NIESHALLA
Indiana Comptroller

Nieshalla

Imagine handing your child a credit card bill with a $107,000 balance. That’s essentially what we’re doing, as that is his or her per capita portion of the $36 trillion national debt.

We are burdening our future generations with this cost that jeopardizes their prospects for financial security and ability to build a bright future. We are, in essence, stealing from our children to finance or own consumption today.

When put like this, it becomes very clear that for our children’s sake, we want this to stop. It undermines the very foundation of the American Dream the idea that each generation will leave the country better off for the next one.

This debt isn’t just a number on a balance sheet. It translates into higher interest rates for mortgages and student loans, slower economic growth and fewer resources for essential services. The annual interest payment on the debt has grown to be greater than the entire U.S. military budget. It means our children will inherit a weaker economy, a lower standard of living and fewer opportunities to pursue their dreams. Unless we act now, they will face the consequences of our fiscal irresponsibility by struggling with higher taxes, reduced public services and a diminished quality of life.

Balancing the budget and reducing spending are among the most difficult, yet essential, actions our president and members of Congress must take.

Unleashing our economy and unlocking our natural resources are vital to growing our way out of debt, but this needs to be coupled with responsible fiscal policies that prioritize debt reduction. It means cutting back on wasteful programs and focusing on ways to increase revenue that won’t stifle economic growth. The ‘mission possible’ is addressing the structural issues that are driving our debt.

That’s why I’m leading the effort, along with 36 other state financial officers from across the country, to convey our depth of support to President-elect Trump and members of Congress to deal with this problem hat is on scale with, if not greater than, the border crisis.

As chair of our National Debt Crisis Task Force, we recently sent a letter asking that they make restoring America’s financial solvency a Day One priority. For starters, ensure that 2025 federal spending is less than 2024’s as a necessary step toward a balanced budget, and unleash economic growth to begin reversing and reducing our debt liabilities.

The national debt is a crisis many decades in the making, with responsibility shared by both parties. Solving it will be a generational challenge. Not solving the problem presents a high risk that our creditors will question U.S. financial stability, the dollar will be replaced as the reserve currency, and we will lose our nation’s status as the global leader.

Back in the early 2000s, Indiana experienced its own financial crisis when the state was in massive debt and our financial outlook was bleak. Starting in 2004, Hoosiers committed to making the tough decisions we are now asking our federal leaders to make. Twenty years later, Indiana is in a strong fiscal position and an example of financial responsibility with balanced budgets, well-funded pensions, healthy cash reserves, low debt, and a AAA credit rating.

Ignoring the federal debt and its rapid growth is not an option. It’s time for our leaders to deactivate the ticking time bomb by exercising fiscal responsibility and working together to find a solution that puts the United States of America on a clear path toward financial solvency. Our children’s future depends on it.

Elise M. Nieshalla serves the Indiana Comptroller.