The Urgent Need for Economic Reform: Addressing the U.S. Debt Crisis
The Looming Economic Collapse
The national debt has surpassed $30 trillion and continues to rise at an unsustainable pace. While government borrowing has long been a staple of fiscal policy, the sheer scale of today’s debt burden is no longer just a domestic issue—it is a looming global threat.
The U.S. dollar serves as the world’s reserve currency, underpinning global trade, financial markets, and international stability. If confidence in the dollar collapses due to unsustainable debt, the ripple effects could trigger a worldwide financial meltdown.
At the heart of this crisis is a federal budget consumed by three primary expenditures: Social Security, Medicare, and military defense. These programs, while essential, are outpacing revenue and are primarily funded through borrowing, further accelerating the debt spiral. Meanwhile, rising interest payments on the national debt are diverting funds from critical investments in infrastructure, innovation, and long-term economic growth. Without immediate fiscal reform, the U.S. risks not just domestic economic stagnation but also the destabilization of the global financial system itself.
1. The Economic Impact of the Debt Burden
A growing portion of the federal budget is now dedicated solely to servicing debt interest, siphoning funds away from productive investments. In 2023 alone, the U.S. spent approximately $700 billion on interest payments—a figure that is projected to increase as debt levels rise and interest rates remain high.
This financial strain is not just an abstract concern for policymakers—it is already impacting everyday Americans. As the federal government borrows more, inflation remains a persistent threat, eroding purchasing power, raising the cost of goods and services, and making it harder for families to afford basic necessities. The more the government borrows, the greater the risk of inflation, devaluation of the dollar, and loss of economic stability.
But the consequences of this crisis extend far beyond U.S. borders. Since the dollar is the world’s primary reserve currency, many international financial transactions depend on its stability. If foreign nations and investors begin to lose confidence in the dollar, they may divest from U.S. assets, abandon dollar-based trade agreements, or shift to alternative currencies like the Chinese yuan or digital assets. Such a shift would shatter global markets, disrupt international trade, and trigger a financial crisis of unprecedented scale.
We are reaching a breaking point, and the consequences will hit you directly. As the government drowns in debt, more of your paycheck will go to higher prices on food, gas, and housing, while your savings lose value overnight. Retirement funds will shrink or disappear, job opportunities will dry up, and wages won’t keep pace with rising costs. If confidence in the dollar collapses, expect a financial shock that could wipe out businesses, trigger bank failures, and make everyday necessities unaffordable. This isn’t just numbers on a government spreadsheet—it’s your future, your security, and your ability to provide for your family at risk.
2. The Three Largest Federal Expenses: Social Security, Medicare, and Military Spending
The three largest expenditures in the U.S. federal budget—Social Security, Medicare, and defense—account for over two-thirds of total spending. These obligations, while critical, are growing at an unsustainable rate and are largely financed through government borrowing, further amplifying the debt crisis.
Social Security ($1.3 trillion, 2023)
Social Security remains the single largest expenditure, accounting for 20% of the federal budget. Over 66 million Americans rely on Social Security for retirement income, but due to shifting demographics and a declining worker-to-retiree ratio, the program is facing insolvency. Without reform, the Social Security Trust Fund is projected to run out of full funding by 2034, at which point automatic benefit cuts will be required.
If we had no national debt, the money spent on interest payments—nearly $700 billion in 2023 alone—could be used to fully fund Social Security and ensure financial security for millions of retirees. Instead, that money vanishes into servicing past borrowing, leaving Social Security on the brink of insolvency. With no debt burden, we could cover essential programs without tax hikes or benefit cuts. But as debt keeps rising, so does the risk that Social Security checks will shrink, forcing retirees to struggle while Washington continues borrowing with no plan to fix the mess.
Medicare ($1 trillion, 2023)
Medicare, which funds healthcare for over 65 million seniors and disabled individuals, consumes 15% of the federal budget. Rising healthcare costs and an aging population are driving Medicare spending to unsustainable levels. The program’s trust fund is expected to face serious shortfalls within the next decade, requiring either tax increases, benefit reductions, or major structural changes.
If we had no national debt, every senior and disabled American who relies on Medicare could have the care they need—without fear, without cuts, without politicians threatening their lifeline. Instead, because of reckless borrowing, nearly $700 billion a year is wasted on interest payments—money that could be keeping hospitals open, funding life-saving treatments, and ensuring our parents and grandparents get the dignity and care they deserve. Without change, Medicare will be forced to cut benefits, leaving millions wondering if they can afford their next doctor’s visit, prescription, or even a hospital stay. This isn’t just numbers on a budget—it’s the health, security, and survival of those who spent their lives building this country.
Military Spending ($877 billion, 2023)
The U.S. military budget remains the largest in the world, surpassing the combined defense spending of the next nine highest-spending countries. While national security is essential, defense spending is a major driver of debt accumulation, especially when combined with long-term overseas commitments and new military initiatives. Unlike Social Security and Medicare, which are funded through dedicated payroll taxes, military spending is financed almost entirely through general revenue and borrowing.
This raises concerns about fiscal sustainability. With ongoing geopolitical tensions, pressure to increase military funding remains strong. However, without a reassessment of spending priorities and efficiency measures, defense costs will continue to contribute significantly to the debt crisis.
National defense is essential—we must protect our nation and maintain global stability—but at what cost? While America foots the bill for defending the world, racking up trillions in debt, many of our allies spend a fraction of what we do, knowing that the U.S. will always step in. Meanwhile, our own economy buckles under the weight of endless military commitments, financed not by dedicated funds, but by borrowing that future generations will be forced to pay. It’s not fair. We are stretching ourselves thin, sacrificing our financial stability, while other nations enjoy security without the same burden. If we continue down this path without demanding that our allies share the load, we risk not just economic collapse, but the very strength we seek to protect.
Monetary Reform: Ending the Debt-Based Money System
I'm not just here to complain—I believe there's a way out of this crisis. Our financial system isn’t broken simply because of government overspending; it’s designed to trap us in an endless cycle of borrowing. The core issue is our reliance on a debt-based monetary system, where every new dollar is created as debt.
This guarantees that debt will always outpace the money supply, making true repayment impossible.
The United States' financial crisis is not merely a result of excessive government spending—it is rooted in a flawed monetary system that relies on debt-based money. Many call this "fiat money," but the more accurate term is debt-fiat money because every new dollar created is issued as debt, either through government bonds or bank loans. This system forces the country into a perpetual cycle of borrowing, ensuring that debt continues to grow no matter what policies are enacted.
But history shows us another way. During the Civil War, Abraham Lincoln issued Greenbacks—a non-debt fiat currency—to fund the Union Army without borrowing from private banks. He proved that money can be created without saddling future generations with endless debt. Yet after his assassination, private banking interests regained control, leading to the establishment of the Federal Reserve and our current debt-driven system.
The solution isn’t reckless money printing—it’s about issuing debt-free money responsibly, tied to real economic productivity rather than financial speculation. If we shift back to a sovereign monetary system, we could eliminate the need for government borrowing, stabilize the dollar, and free ourselves from the grip of private banks. This article will lay out how we can achieve that and finally break the cycle of debt-fueled collapse.
The truth is, it does not matter what backs a currency—gold, silver, or even government decree. What matters most is who controls its issuance and how its quantity is managed. The real problem is that under the current system, all money is created as interest-bearing debt. But the money for the interest is never created, forcing us to print more to pay the debt, which leads to more debt... and the cycle goes on. This ensures that total debt must always exceed the total money supply, making repayment impossible without further borrowing. This system benefits bankers and financial institutions while trapping governments and the public in endless cycles of debt and inflation.
After Lincoln’s assassination, President Andrew Johnson took steps that ultimately restored control of the U.S. monetary system to private banking interests. By moving the country back toward the gold standard, he ensured that those who controlled gold—primarily banks and wealthy elites—indirectly controlled the money supply. When gold was abundant, money flowed freely, leading to inflation. But when bankers and industrialists withdrew gold from circulation, money became scarce, triggering economic downturns and depressions. This manipulation of the currency supply put financial power in the hands of a few, setting the stage for economic instability and deepening reliance on a debt-based system. This cycle continued until the establishment of the Federal Reserve in 1913, which permanently tied money creation to interest-bearing debt, keeping the nation in a constant state of borrowing and financial dependence.