Governor Mitch Daniels Loses Way On National Debt

Republican Governor Mitch Daniels of Indiana made a rather interesting statement at the recent CPAC convention. He stated that the interest we pay on the national debt will exceed what we spend on defense of the country. Ummm…no.

The nature of this site is devoted to bringing attention to the national debt problem that threatens to do to our country what no enemy country, group or individual ever has. Given this, I’ll admit I am prone to stating things a bit strongly if for no other reason than it is frustrating to notice the things that happen in Washington, D.C. That being said, there is always a line of reality that can’t be crossed.

Unfortunately, Governor Daniels blew by the line in the sand of reality. His specific statement was we would be spending more on interest payments on the debt than the defense of the country in “a few years.” This is so incorrect that there really isn’t any way to square it with reality.

The budget for defense this year is about $820 billion and is forecast to rise to just over $900 billion by the end of the decade. The interest on the national debt this year will be just under $200 billion. That is a lot of smackaroos, but it is hardly anywhere close to the total defense budget.

What about the future? Well, it is hard to tell because we can’t forecast the rates on the treasure notes in the future. That being said, all expectations are we will see much higher rates and much higher total interest paid. Will it be in the range of $900 billion? No. Why? Because we will default on the debt well before that.

The national debt debate is a serious one and a near term problem that could slaughter our way of life as we know it. While I commend anyone who raises the issue, hyperbole doesn’t help where it isn’t based in reality.

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