U.S. National Debt crossed above $33 trillion for the first time just last week and another $100 billion in debt has already been added to that total.
What's different this time, as this chart from Bank of America shows, is that previous bouts of spending occurred during wartime or times of financial crises. Today's economy is growing, and unemployment is at all-time record lows. This is the environment historically where the deficit would be shrinking as the government stood back and let the private sector do the heavy lifting.
This shortfall has to be covered by the issuance of debt, and the cost of that financing has doubled in the past 18 months.
According to the U.S. Treasury, as of August, it cost the government $808 billion just to maintain its debt. That’s 15 percent of the total federal spending – and it's growing.
A report from the Peter G. Peterson Foundation (a nonpartisan organization dedicated to increasing awareness and accelerating action on America’s long-term fiscal challenges) points out that "the federal government already spends more on interest than on budget areas such as veterans’ benefits, transportation, and education."
This issue needs to become front and center heading into the election year.