The debt of the United States of America now exceeds $34 trillion, and– for the first time in American history– the government has to borrow 100% of the money needed to fund regular operational expenses of $1.5 trillion.
What a sad and disturbing mess! New Speaker of the House Mike Johnson is setting up a bi-partisan debt commission to work on ideas to get our fiscal house in order. “The greatest threat to our national security is our nation’s debt,” Johnson said during his first speech from the speaker’s dais in the House chamber. “We know this is not going to be an easy task and tough decisions will have to be made, but the consequences—if we don’t act now—are unbearable.”
I truly hope this panel of members bears some fruit, but if you think about it, the entire Congress is already a commission that should be dealing with the financial mess staring us in the face. Imagine a sinking ship with all the crew just standing around saying let’s debate some ideas to save the ship!
The time for action has come—and drastic action at that. The first budget deal between the Senate Democrats and the House Republicans doesn’t appear to indicate much progress.
Governance without a shutdown is good, but keeping spending at current levels we can’t afford, without borrowing even more money isn’t much of a strategy. Our small business would be bankrupt if I followed such a strategy.
The election season starts now, and hopefully the American people will demand an actual plan to fix our finances from the Senate, the House and our next President.
About the author: Mike Mazzei, CFP®, MPAS®, is the President of Tulsa Wealth Advisors. A Certified Financial Planner professional, and Master Planner Advanced Studies, he created The Financial Freedom Process™ to help individuals leverage their wealth in order to help them achieve their lifetime visions. Mike is a former Oklahoma State Senator (Dist. 25 in Tulsa) & OK Sec. of Budget. He is the proud husband to Noel and father to 5 great kids.