Article Image

News Link • Government Debt & Financing

Shutdown Only a Snapshot of Looming Fiscal Crisis

• Ron Paul Institute - Joe Penland

Federal workers — including military personnel, air traffic controllers, and law enforcement officers — went unpaid.

Millions of Americans relying on SNAP benefits faced the prospect of not having food, and small businesses that depend on federal contracts struggled with economic losses.

Yet, as disruptive as the shutdown was, it was the tip of the iceberg when compared to the long-term fiscal crisis looming over the United States.

We have a national debt exceeding $38 trillion and a Social Security Trust Fund on track to be depleted in the 2032-2033 timeframe.

The shutdown, although painful, was temporary.

A debt crisis would be long-lasting and could trigger a global depression far worse than the Great Depression that began in 1929, and didn't begin to end until 1941.