[FRIAM] A Simple Look at the U.S. Debt and Deficit

[Pieter Steenekamp]

I want to share a few thoughts about the United States. I’m not a supporter
of Donald Trump, but I am a big supporter of the United States as a
country. I admire the ideas of freedom, opportunity, and innovation that
the U.S. represents. It honestly makes me a little sad that Americans don’t
seem to elect better leaders. Out of all the smart and capable people in
that country, surely they can find someone more inspiring and responsible.
But I suppose that’s how democracy works—people choose, and sometimes the
results aren’t great.

Even with leadership that I don’t always agree with, I still think the U.S.
is doing well overall. I believe the U.S. is still the best hope we have
for a country that can lead the world in a positive direction. And to me,
that leadership matters a lot—especially because I wouldn’t want to see a
country like China, which doesn’t value individual freedom or human rights,
becoming the world’s main superpower. Europe is important too, but I don't
think it's strong enough on its own to lead the free world. Maybe India
could grow into that role someday, but right now, the U.S. is still our
best hope.

That’s why I get concerned when I look at the U.S. government’s spending
habits. Right now, they are spending much more than they earn in taxes,
year after year. Over time, those deficits pile up into debt—a very large
amount of money that the country owes.

You might think: “Come on, the U.S. is too powerful to fail.” But that’s
not how money works. Even big, powerful countries can run into serious
problems if they don’t manage their finances well. And while I don’t
believe the U.S. is in danger of a crash tomorrow, it’s clear that the
growing debt and constant deficits are becoming a real problem.

Lynn Alden said it well in her latest newsletter (
https://www.lynalden.com/june-2025-newsletter/ ):
"We’re not at the point where the debt or deficits are going to cause a
massive train wreck any time soon. However, we are well into the era where
the deficits do matter and have consequences."

In other words: No need to panic yet—but we can’t ignore the problem either.

If the U.S. wants to keep leading the world—and I hope it does—it needs to
start taking its finances more seriously. The country is not “too big to
fail.” And if it does stumble, the world could be left without strong and
fair leadership. That’s a risk none of us should take lightly.
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