Everyone Gets a Bite of the S**t Sandwich—How to Tackle the Federal Debt and Deficit
The U.S. federal debt has surpassed $36 trillion, with annual deficits pushing $2 trillion—and there is no easy way out of this fiscal mess. The sheer size of the debt means that no program, tax policy, or spending category can remain untouched. Despite political promises and entrenched positions, the reality is that everyone—across political and economic lines—will have to give a little to address the problem.
For decades, both parties have treated certain programs as untouchable. Social Security, Medicare, defense spending, tax cuts, and subsidies for various industries have been considered off-limits for budget negotiations. However, with debt at these levels, there are no more sacred cows. Everything has to be on the table.
Policymakers often avoid making tough choices because cuts and tax increases are unpopular. But the alternative—continuing down this path—only leads to unsustainable interest payments, weaker economic growth, and a growing risk of fiscal crisis.
Unlike the federal government, states are required by law to balance their budgets. Every year, governors and legislatures make tough decisions about spending priorities. For example, Utah recently cut certain education programs, shifting funds to higher-priority initiatives. California, despite having one of the largest economies in the world, has had to slash billions from its budget due to revenue shortfalls. Kansas and Illinois have made difficult choices around pension reform, while Texas has trimmed spending on infrastructure projects to stay within budget. States don't have the luxury of running deficits indefinitely. When revenue falls short, they either cut spending, increase taxes, or both—something the federal government has avoided for too long.
Imagine a family that has been living beyond its means for years, relying on credit cards to cover everything from groceries to vacations. Now, with rising interest payments and mounting debt, they realize they have to make tough choices. The parents sit down and go through their budget, knowing that no expense is off-limits. They might have to cancel their annual vacation, cut back on dining out, and even reconsider how much they contribute to their retirement savings. Their children, used to summer camps and new gadgets, may have to adjust to fewer luxuries. No one in the family is happy—each person is giving up something they value. But if they don’t act now, the debt will only grow, and soon, they won’t be able to afford necessities like housing and healthcare. The government’s fiscal situation is no different: without responsible choices today, the consequences will be far worse tomorrow.
The reality is, as Congress and the White House work to control spending and increase revenue, everyone will feel some pain.
Entitlement programs: Social Security and Medicare might see adjustments, whether through benefit changes, higher eligibility ages, or means testing.
Defense spending: The Pentagon’s budget, often considered untouchable, may face reductions.
Tax policy: Some deductions and credits may be eliminated, and tax rates may rise.
Discretionary programs: Funding for education, transportation, and scientific research could be trimmed.
No single constituency will walk away unscathed. Some people will see benefits reduced, others will pay more in taxes, and nearly everyone will have to accept that the government cannot afford to do everything it does today.
The political challenge is that every cut or tax increase upsets someone. Yet, without shared sacrifice, the problem will only worsen. The longer we wait, the more drastic the solutions will need to be. Policymakers and citizens alike must recognize that fiscal responsibility requires difficult trade-offs.
There are no easy answers. But one thing is clear: with $36 trillion in debt, there are no sacred cows left. It’s time for everyone to give a little—or we risk facing a financial reckoning that will force much more painful decisions down the road.
