Maya MacGuineas, president of the Committee for Responsible Federal Budget, spoke recently with Daily Wire Executive Editor John Bickley about the alarming state of the U.S. debt and its implications for the economy and national security. The Committee for Responsible Federal Budget is a bipartisan nonprofit group focused on fiscal policy, particularly the growing debt and deficits in the country.
During the discussion, MacGuineas emphasized that the rising debt is a significant concern for everyone, even if its effects aren’t immediately felt. She explained that high debt levels can hinder economic growth, increase inflation, and push up interest rates. This leads to lower wages and a diminished standard of living for Americans. As the government borrows more, it competes with the private sector for investment, which ultimately slows down economic progress.
MacGuineas highlighted that interest payments on the debt are consuming a larger portion of the federal budget, which limits funds available for other priorities, such as tax cuts or increased spending on social programs. She warned that this situation makes it harder for the government to respond to emergencies, such as economic downturns or national crises, as higher debt levels lead to higher interest rates when borrowing is necessary.
Moreover, she pointed out that the issue extends beyond economics. The U.S. is borrowing from countries that may not share its values, which could compromise national security and strategic decision-making. This financial strain also affects future generations, who will inherit a heavy debt burden with fewer resources to address their own challenges.
Bickley asked MacGuineas about the current political climate regarding fiscal responsibility. She expressed her frustration, noting that the political landscape is increasingly polarized. Both parties often engage in a bidding war over tax cuts and spending increases without addressing the debt issue. MacGuineas lamented that while efforts to curb spending have prevented even worse outcomes, significant progress is still lacking.
She concluded that the country needs to change course and start reducing the debt-to-GDP ratio instead of allowing it to grow further. The conversation underscored the urgent need for a serious dialogue about fiscal policy and the long-term implications of current borrowing practices.
