Federal Revenue & Spending - The National Debt
- davidcogd
- Nov 21, 2024
- 2 min read
In Previous Reports, Cogport provided background on U.S. Federal Revenue and Spending.
Here is a recap:
2023 Federal Revenue – All Sources $ 4.9 Trillion
2023 Federal Spending $ 6.7 Trillion
2023 Federal Budget Deficit $ - 1.4 Trillion
2024 Projected Budget Deficit $ - 1.9 Trillion
Current National Debt $ 36 Trillion
2024 Projected Interest Cost on National Debt $ 1.2 Trillion
How do we grasp the magnitude of these numbers?
Here is a comparison:
The projected cost to rebuild the Baltimore/Chesapeake Bridge after the collapse is $ 1.9 Billion.
The amount spent by the U.S. Government in annual cost for Interest Payments alone could build 630 of those bridges !
That is an opportunity cost to the Citizens of the U.S. when the National Debt continues to grow at the rate of $ 1 Trillion every 100 Days !
WHAT NEXT ?
The need to stop Deficit Spending is obvious. The Trump administration appears ready to engage in cutting costs through smaller government and efficiency. The Elon Musk reduction goal of $ 2 Trillion presents a significant challenge.
Cogport maintains that significant change is feasible. Not just in Efficiency, but other agendas as well:
Eliminate Federal programs that were not granted by the Constitution.
Return Responsibilities to the States and the People.
Reengineer the organization of Federal Departments and Agencies. Streamline.
Eliminate overlap and duplication of Responsibilities.
Eliminate unnecessary Departments and Agencies.
Phased-in Reform of Social Security and Medicare, protecting current Participants.
Additional Revenue from Corporations and Capital Gains Taxes.
BENEFITS
A rebalance of Priorities in Federal Government would provide:
1. Lower interest rates – Good for Everybody and Economic Growth.
2. Future Opportunity to lower tax rates for individuals.
3. More Flexibility for States to develop Programs that fit the local needs of Citizens.
4. A Strong Dollar – reduced inflation and lower cost for Imports.
SUMMARY
There are a huge number of facets to this endeavor. The U.S. Government has grown so large that I have not found an exact count of the current number of Federal Agencies – some estimates are over 400 Agencies !
No wonder we have such a miasma of Bureaucracy, Rules and Regulations. No one can comprehend it with all its complexity. Time for major reorganization.
Cogport will approach the issues on a subject-by-subject basis. Next post will address the opportunities for achievement of a Balanced Budget.
David Hollaender November 20, 2024
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