The U.S. National Debt, Federal Budgeting, and the Importance of Transparency and Accountability.

• In Event: Public Interest

Abstract

Since the turn of the century the U.S. national debt has exploded, necessitating a debt ceiling increase from $6 trillion to over $19 trillion. In the aftermath of the 2008 recession the national debt increased from $11 trillion to over $19.9 trillion. While annual deficits have fallen in recent years, they are projected to continue and U.S. national debt is expected to increase to $28 trillion by 2026. Ongoing deficits and increasing national debt contribute to an unsustainable situation that will prove challenging to U.S. leaders. Adhering to accounting principles of transparency and accountability can help to facilitate budgeting decisions and will provide a framework to make progress in addressing budgeting challenges and the national debt. Debt reduction measures need to be implemented so as not to negatively impact economic growth. Strategic implementation of debt reduction measures that phase in gradually are most likely to achieve this objective. Waiting years to address the national debt will involve more substantial actions that are likely to negatively impact economic growth; thus, we recommend taking action to address the national debt at the earliest opportunity.

Authors

• Patrick T Kelly, Providence College

• Robert D Allen, University of Utah