Some leading economists and mathematicians built a computer
model of the US economy to run various scenarios. Because this was
such a big math problem, they used thousands of NASA and Amazon
computers.
The computers were unable to create a working model because of
the rising debt. Us Government Debt is currently over $36 Trillion.
The increasing interest on the debt is unsustainable. The computers
projected interest on the debt would consume one-third of all tax
revenues within a decade. In 20 years, interest on the debt was
estimated to be about 80% of tax revenue.
With the vast majority of revenues consumed by interest
payments, there is not enough money remaining to pay for
maintaining infrastructure, military, or other government
services.
Economic chaos is the likely result. Many argue what would
happen; Austerity Measures, Depression, Hyperinflation, ect. The
reality is there are no good options.
The best option is to avoid economic chaos.
The good news is the computers estimated we have about 20
years before economic collapse. This gives us some time to fix the
problem. But the longer we wait, the more drastic the
solution.
The solution is obvious:
1. Increase income.
2. Reduce spending.
The Trump administration is aggressively taking steps to
increase income (GDP) thru increasing tariff income, using
tariff policy to reshore manufacturing, and encouraging investment
in America.
DOGE found billions in waste and fraud. The Big,
Beautiful Bill reduces spending about 2%. Deporting illegal
aliens will reduce government welfare spending by billions of
dollars. Further government reductions of spending are promised in
the future.
There has been push-back on spending reductions, mostly from
the court system. Many of the district court rulings have been
overturned by Appellate Courts or the US Supreme
Court.
It is not predetermined that the US economy crashes due to
excessive debt. But major changes in income and spending have to be
made.
This will be a generational change to the US economy.
Regardless of what happens, there will be a significant transition
period.
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