The U.S. Department of the Treasury recently published its second monthly federal spending report of Fiscal Year (FY) 2025. To say the least, the U.S. government did not use a fresh fiscal year to change its dreadful spending habits.
While the government casually blew through billions of dollars this past month of November, American citizens struggled to keep their finances in check for the holidays amid record-high inflation.
In November, the government spent 222% of its revenues.
Imagine if an American citizen regularly spent like this. They would accumulate debt that would swiftly devastate their livelihoods.
Why are lawmakers not constrained by the same notion of foolish spending that citizens are?
In just two months, the government piled up $624 billion dollars in debt. Revenues for October and November totaled $629 billion, while about $1.3 trillion was spent.
Source: U.S. Treasury
The Congressional Budget Office (CBO) reported that outlays were 18% higher in the first two months of FY 2025 than they were in the same period last year. A 7% expansion of Social Security benefits and a 9% increase in Medicaid outlays were drivers of the spending increase.
Source: U.S. Congressional Budget Office
If the government remains on this fiscal trajectory, future generations will pay the price. According to the analysis by EPIC President and CEO, Paul Winfree, Ph.D., we face the possibility of a debt spiral and the rapid erosion of our borrowing capacity by 2032, threatening our nation’s global legacy.
Many American households sacrifice by carefully spending in order to secure the financial wellbeing of their children and future generations. Our government would be wise to reflect the principles of its own citizens.
