David Vance SubstackRead More
It’s been very interesting watching Elon Musk during the past six months as he entered his DOGE role advising the US Government and seeng him so close to Trump that people talked about a “bromance.” Musk is not a politician and as time has gone by that has become more and more obvious. He’s honest and direct and sees thing as they are. He posted this on his X yesterday;
And why did he do this? Well, this might explain everything in one simple chart
The political class in Congress are spending like drunken sailors on leave and unfortunately the nature of the system encourages this. That’s how dysfunctional it has become.
Let’s consider WHY US Debt is soaring!
For starters, the federal government consistently spends more than it collects in revenue, leading to annual deficits that add to the debt. A significant portion of federal spending is driven by mandatory programs, particularly Social Security, Medicare, and Medicaid. These costs grow faster than the economy, contributing to larger deficits. As debt grows and interest rates rise, the cost of servicing the debt increases. In 2024, net interest payments were an amazing $881 billion, surpassing all federal programs except Social Security. US debt, now over $36 trillion (122% of GDP), is projected to reach 129% of GDP by 2034 if current policies continue.
It is simply not sustainable but the GOP seems happy to allow it to continue. After all, in the long terms we are all dead, Even Trump seems prepared to increase the debt. His “One Big Beautiful Bill” increases the national debt due to its $4 trillion in tax cuts, $300 billion in new spending, and a $4 trillion debt ceiling increase, which outstrip the $1.5 trillion in spending cuts.
To the surprise of no-one, this bill has raised alarms in financial markets, with bond yields hitting near two-decade highs and Moody’s downgrading the U.S. credit rating due to rising debt concerns.
Elon Musk’s outrage at the out of control spending is fully understandable. As a businessman he knows that budgets must be tightly controlled and strict financial rectitude required.
Congress is basically pigs at the trough.
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