Local Opinion: Charting a course after the debt ceiling deal, or simply after the debt ceiling deal

U.S. national debt is a problem. The conventional (imperfect) metric is the ratio of national debt to gross domestic product. According to European Union guidelines, this ratio should normally be less than 60%. Our ratio is currently twice this limit, and mainly because we are an aging population, without intervention, this ratio will increase.

I urge readers to consult a historical graph of the debt/gdp ratio. This ratio steadily declined post-WWII from 120% to 30% in 1980. The ratio doubled to 60% by 1992, partly because of Reagan tax cuts which failed to pay for themselves. After slightly declining, the ratio spiked during the George W. Bush financial meltdown and again during the pandemic.

Anyone who believes that the debt ceiling deal has addressed the problem is delusional. This deal involves relatively small amounts of discretionary spending cuts which will be negotiated over the coming months. The big non-discretionary drivers, Social Security and Medicare, were ignored. There are no revenue enhancements.

Here are a few issues which should be included in upcoming negotiations:

Eliminate subsidies for biofuels. The mandated use of ethanol has distorted the economy, damages the environment, and enables Putin to use food prices as a weapon (see “The fuel that powers Putin”).

Eliminate fossil fuel subsidies such as the oil depletion allowance. Anyone who pays attention to markers of climate change (such as sea surface temperatures) knows we are the proverbial clueless duck in a warming pot. We have to phase out dependence on fossil fuels. A key step: the market based revenue neutral carbon fee/dividend proposal of the Citizen’s Climate Lobby.

Insurance companies are pulling out of high risk markets, such as wildfire prone areas of the West and coastal communities of the Southeast. The federal government should not assume these risks.

The federal government should not compensate Colorado Basin states for loss of water. We ignored warnings — it is pathetic to claim that climate change and aridification have taken us by surprise — and we need to realistically price water.

Eliminate Senator Sinema’s prized carried interest loophole (see Warren Buffett’s “Stop coddling the super-rich”).

Restore funding for the Internal Revenue Service — it is reasonable to expect people to truthfully report their tax liabilities.

These are not normal times. The conflict in Ukraine is a pivotal struggle between democracy and autocracy. It is essential that we support Ukraine. Climate change is a Frankenstein which we created. Social Security and Medicare are at risk. To simultaneously meet these challenges and manage national debt, we need constructive cuts and revenue enhancements. The latter will be in play when the Trump tax cuts expire in 2025.