The national debt in the United States is steadily increasing year after year, finally reaching a historic level. This situation is concerning, with a fast-paced growth at a rate of a staggering $1 trillion accruing to the national debt every 100 days.
On today’s show, we’re going to talk about some of the main factors brewing behind the scenes. This massive amount of looming debt proves a serious lack of financial responsibility within the US government, including skyrocketing spending habits that will have serious lasting effects for the American people for decades to come.
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The national debt encompasses decades worth of debt for the country. That includes war, programs like food stamps, education, and funding national parks.
Outside of that, one of the main factors that has contributed to this massive amount of debt, and especially the rate at which it has grown, is pandemic-related spending. Gobs of money were thrown at the problem, from vaccine development to grants and subsidies, economic impact payments, funding for healthcare, and so on… You can see how this could easily and quickly add up.
What are the implications of this debt load? This amount of debt is just a ticking time bomb. It threatens any remaining security and resiliency of the economy. It gives the country less flexibility to respond to unexpected problems, removes all safety nets, slows economic growth, and places the burden on future generations.
It seems obvious that this is an issue that needs to be addressed. Three out of four voters agree that the national debt should at the forefront of policymaking. There are two main options that could make an impact: reduce spending or increase revenue. And the best way for the US government to increase their revenue is by charging Americans more in taxes. What do you think our lawmakers will choose? I can tell you; they’re definitely not taking any pay cuts…
Politicians cannot agree on a way to tackle this mountain of debt. Plus, both parties are unlikely to cut funding to programs or hike up taxes – because at the end of the day, they’re all looking to get elected. It’s futile to point fingers, as both parties have ultimately contributed to the issue, and both should take responsibility for finding solutions.
As for the people, I always say, if you want to stay afloat in today’s economy, you’ll have to learn how to protect yourself and your wealth from external factors. It’s more important than ever to think about ways to reduce your overall tax burden and to begin building generational wealth for your family.
The best ways to do this include buying real estate. Rental properties are inflation proof assets that will always provide income. And best of all, investing in real estate offers many great tax benefits – this will protect you if your elected officials decide to ramp up taxes in order to increase the country’s income. If you’re interested in what we do at Morris Invest, you can click the link in the description box to schedule a free call. We can help you decide if rental real estate is a good fit for you.
Additionally, investing in gold will always be a solid strategy – it’s a safe and tangible asset that is resistant to inflation and market volatility.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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