Out Of Control Government Spending Is Not Our Problem

This article from an economist, who was part of the Reagan administration, uses a graph from the Treasury to make an important point.  Our long term primary budget deficits are easy to fix with a modest increase in revenues and Medicare reform.  The primary budget deficit excludes interest payments on the national debt.  Growth in interest payments on the debt is the major source of future budget deficits.  Economists regard interest payments as transfers.  Half of the interest payments in the future will go to our children.  The debt is not making them poorer.  The other half will go to international investors.  Most of it will go to central banks that will not spend the money.  It will be held in their reserve accounts.