$28 Trillion of US Debt
usdebtclock.org
usdebtclock.org
At the time, the government was bringing in 2.4 trillion in (tax) revenue and spending 3.8 trillion. This was adding 1.4 trillion a year to the federal deficit. At the time, 9% of the year’s tax revenue was being spent on interest payments on the federal debt and that percentage was rising every year.
For the project, I remember cutting defense spending by 80% to 2x what China spends, cutting all discretionary spending by 1/2, and tripling excise taxes before I had close to enough to balance the federal budget.
https://www.crfb.org/debtfixer/
It’s not quite up to date with the latest budget numbers, but still a good way to see the hard choices that need to be made.
I'm also not very sure a bunch of small changes can really work. It's likely big dramatic changes are necessary. For example:
- replace all social welfare programs with basic income that we can afford.
- replace all healthcare with a universal healthcare system that focuses on free human-less diagnostics and generic drugs and otherwise a free market. (It would be very cheap to offer this and it would be dramatically better for most).
- cut military budget by 50%, but let the military itself determine how to cut. I was in the Army. There is easily 50% of waste there, but it is everywhere and you would need to implement a culture of budget awareness (e.g. don't start your tank to heat a can of soup).
- reduce prison population 90% of it's current level. Once or twice a year, just order prisoners from "most releasable" to "least releasable", and release anyone over a threshold.
You might disagree with these implementations, and that is fine, but somehow it feels large changes like this are dramatically more likely than killing a million small programs without them coming back.
TLDR; It's not the US Debt Clock, it's the US Savings Clock.
But the US is in a different position because it has the world’s reserve currency. It maintains that position by simply depreciating less than all of the other major world currencies. If it looses that position, it would have disastrous effects on the purchasing power of the US relative to other counties.
The analogy is imperfect (as are all analogies), but it compensates for a lot of the issues that cause so much hand-wringing about the deficit. The more important observation is that inflation is low and so is the interest that the US government pays on new bonds (i.e. "deposits"). That means both that the situation is stable and that it's expected to remain stable for the foreseeable future.
There are more stabilizing steps to be taken in the future, and ideally they'll help lower the deficit and then the debt. But the OP's point is that it's not a crisis.