The U.S. federal government has added another $2 trillion to its debt in the past year. This level of debt increase is typically seen during times of war or significant national crises. However, currently, as Republicans and Democrats are once again involved in a budget-related shutdown, the country is not at war. There is no ongoing pandemic, the economy is performing well, and yet another shutdown is taking place. It will not address the reality that the political leadership is spending money at a rate that would astonish Franklin D. Roosevelt’s wartime administration.

The Daily Treasury Statement indicates that total federal debt increased from $35.5 trillion in September to $37.5 trillion this week. During times of peace, with low unemployment and a thriving stock market, this is astonishingly irresponsible. However, in Washington, political victory takes precedence over addressing the root issue: excessive spending, particularly the rapid growth of entitlement programs.

Despite their reputation as fiscal conservatives, Republicans have been responsible for much of this increase. They claim $206 billion in so-called “savings” from the Department of Government Efficiency and $213 billion in tariff revenue—figures that are negligible compared to the overall debt. As Alex Durante and Garrett Watson from the Tax Foundation notepoint out, tariff revenue has almost no impact on the country’s financial outlook.

Even if President Donald Trump manages to collect all the funds from his “emergency” tariffs, the ratio of federal debt to gross domestic product (GDP) would still exceed 124 percent by 2035. Keep in mind that the majority of this revenue comes from Americans, not foreign entities—and the tariffs’ negative impact on economic growth counteracts much of the income generated.

Democrats, on their side, are resisting by insisting on even greater long-term spending. Senate Democrats recently prevented a clean continuing resolution that would have maintained former President Joe Biden’s funding levels from December 2024. Consequently, the government has shut down. Why? To use the threat, and now the impact, of a shutdown to secure $1.5 trillion in additional benefits, including making the temporary emergency subsidy expansions under Obamacare permanent.

That’s in addition to subsidies that have become excessively high. The Paragon Institute’s Brian BlasenotesIn 2014, 68 percent of Obamacare premiums were paid by taxpayers. By 2020, this share had increased to 80 percent. Thanks to Biden’s COVID-19-related credits, taxpayers currently cover 93 percent of the premiums.

This is merely the surface of the spending iceberg. The Cato Institute’s Chris EdwardstalliedThe complete extent of Washington’s distribution-based system: 2,623 benefit and subsidy initiatives currently complicate the federal budget. In 1970, there were 1,019. By 2000, the number had risen to 1,425.

The Department of Health and Human Services oversees hundreds of welfare initiatives in addition to Medicare and Medicaid. The Department of Agriculture manages more than just agricultural subsidies, including rural support, food assistance, the WIC nutrition program, and school meal programs.

Add hundreds of tax breaks that function as hidden benefits, and the budget transforms into an octopus of various subsidies. It’s understandable that spending increases regardless of which administration is in power.

The findings can be seen in the calendar as well as in the spreadsheets. This year, “Deficit Day”—the day when federal income collected since January 1 is exhausted—occurred on September 21. All funds spent after this date are obtained through new loans.

Antony Davies and James Harrigan, the creators of the Deficit Day calculation,liken itTo a family that runs out of funds a week before each month ends and has experienced this for 25 consecutive years. Washington allocates $19 billion daily. That amounts to $7 trillion in 2025. All the money from now until New Year’s will be added to the $37 trillion national debt.

Both sides are at fault. Republicans borrow excessively and claim that tariffs or efficiency “savings” will balance the budget. Democrats push for even more benefits, funded by money we don’t actually possess. They employ extreme tactics as a diversion, transforming simple government operations into a high-stakes negotiation.

That’s not genuine reform. It doesn’t reduce the size of government. It doesn’t enforce accountability. It squanders more funds while the uncontrolled expansion of welfare and subsidy programs remains ignored. The agreement continuing Biden’s high spending levels for seven weeks was not perfect. However, it was the most acceptable choice: It would have prevented a government shutdown, provided additional time, and did not introduce new welfare programs.

No matter the approach, we still require a genuine solution. However, it will demand bravery that neither side has displayed. Edwards suggests that Congress should reduce entitlements and review the Federal Program Inventory to remove hundreds of low-value subsidies. Blase contends that Washington should scale back Obamacare subsidies and reinstate price control in healthcare. As Davies and Harrigan illustrate, debt is no longer a “future” issue; it is already here.

Currently, we are stuck with a government that takes on debt as if it’s engaged in World War III, yet claims it’s simply operating as usual.

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