![\"\"](\"https:\/\/stateofthenation.info\/wp-content\/uploads\/2025\/06\/big-beautiful-bill-whos-paying.webp\")
<\/p>\nKey takeaways<\/strong><\/h3>\n\n- Between the existing debt and a new deficit, the U.S. is in real financial trouble<\/li>\n
- Even GOP leaders now admit they got it wrong on the Big Beautiful Bill<\/li>\n
- This isn\u2019t theoretical: Deficits and debt\u00a0really do<\/em>\u00a0drive inflation<\/li>\n
- There\u2019s no quick fix for decades of financial mismanagement<\/li>\n
- Protecting our purchasing power is our own responsibility<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n
What do you do if you find that you consistently overspend your income, borrowing money just to meet your obligations? If it\u2019s you or me, we find ways to cut costs or make more money so that we can live within our means. After all, no money means no food or shelter.<\/p>\n
That\u2019s not how the federal government works, though.<\/p>\n
The latest fiscal budget, also known as the Big Beautiful Bill,\u00a0does\u00a0<\/em>cut costs… but increases spending a lot more. And that is part of what is causing some people, including debt hawks and fiscally conservative Republicans, to speak out. To break ranks. Even to say they “regret” voting for it!<\/p>\nThat’s mostly politics, though. We’ll start there, then talk through the economic impact this deficit spending problem has on you and me.<\/p>\n
Adding another $3-$3.8 trillion to the national debt?<\/h2>\n
Before we get into what they said, there\u2019s some details about the \u201cBig Beautiful Bill\u201d to go over so that you can have\u00a0some context<\/a>:<\/p>\nThe Committee for a Responsible Federal Budget estimates the bill, as written, would add about\u00a0$3.1 trillion\u00a0<\/strong>to the national debt over a decade with interest, to\u00a0a total $53 trillion.<\/strong>\u00a0The Penn Wharton Budget Model estimates a higher tally: $3.8 trillion, including interest and economic effects.<\/em><\/p><\/blockquote>\nMore<\/em>\u00a0than an\u00a0extra<\/em>\u00a0three\u00a0trillion<\/em><\/strong>\u00a0dollars to the national debt!<\/p>\nWhat happened to DOGE? What happened to being responsible with\u00a0our<\/em><\/strong>\u00a0money and reducing the budget deficit at the same time?<\/p>\nMaybe that’s why former DOGE head Elon Musk has been\u00a0blowing up his X account<\/a>\u00a0with attacks on Congress for passing the 2025 budget. I’m not sure whether he’s more angry over being sidelined, or genuinely outraged over the additional spending. Musk seems determined to have a blistering public feud with the President over this. (Let’s be honest, though \u2013 trading barbs on social media is\u00a0not\u00a0<\/em>going to fix anything.)<\/p>\nMusk is not the only outspoken CEO who has concerns about the federal deficit and the national debt. Erik Revell with\u00a0Fox Business<\/em>\u00a0writes<\/a>,<\/p>\nJPMorgan Chase CEO Jamie Dimon warned in a new interview that the U.S. government’s rising debt and budget deficits are a problem\u2026 and offered his thoughts on how reforms should move forward.<\/em><\/p><\/blockquote>\nNow, remember, Jamie Dimon was considered a short-list candidate for Secretary of the Treasury last year. (In other words, a\u00a0much more credible source<\/em>\u00a0than Musk.) Rather than ramping up deficit spending, Dimon suggested:<\/p>\n“The real focus should be growth, pro-business, proper deregulation, permitting reform, getting rid of blue tape, getting skills in schools, get that growth going \u2013 that’s the best way.”<\/em><\/p><\/blockquote>\nNote:\u00a0<\/strong>I never saw the words \u201cblue tape\u201d used like that before, so I looked it up. We all know about \u201cred tape\u201d \u2013 government regulations at the federal, state, county and city levels that make it impossible to accomplish anything.\u00a0\u201cBlue tape\u201d<\/a>\u00a0is\u00a0the same problem<\/em>, but one that comes\u00a0from the sector itself,\u00a0<\/em>whether from other businesses in the same industry, trade groups or non-government watchdogs.<\/p>\nBridgewater founder Ray Dalio has warned us repeatedly of an\u00a0\u201ceconomic heart attack\u201d<\/a>\u00a0due to continued deficit spending and the unsustainable national debt. In fact, he just released a book on exactly this topic (summary here<\/a>).<\/p>\nShark Tank star Kevin O’Leary\u00a0has some concerns<\/a>, too:<\/p>\nI read all these bills through the eyes of small business… Somebody should fix this in the big, beautiful bill, because it\u2019s not beautiful for small business.<\/em><\/p><\/blockquote>\nThe bipartisan\u00a0Peter G. Peterson Foundation<\/a>\u00a0issued a grim forecast:<\/p>\nOver the next decade, the U.S. government\u2019s interest payments on the national debt are now projected to total $13.8 trillion \u2013 the highest dollar amount for interest in any historical 10-year period and nearly double the total spent over the past two decades after adjusting for inflation. In fact, by pretty much any measurement, interest on the national debt will soon grow beyond its highest level since 1940, when such data were first collected.<\/em><\/p><\/blockquote>\nEven worse, the organization estimates that\u00a0interest payments alone\u00a0<\/em>on the national debt would consume 18.4% of all government revenue. That’s a\u00a0lot\u00a0<\/em>to pay for debt service, and it’s only going to get worse.<\/p>\nPossibly in response to these concerns, or maybe because they finally got a chance to actually read all 1,000+ pages of the bill, some major GOP figures are now calling the nation\u2019s economic future into question.<\/p>\n
Republicans begin to question national debt sustainability<\/h2>\n
Two notable GOP stalwarts spoke up against the \u201cBig Beautiful Bill\u201d \u2013 Kentucky Senator Rand Paul and Representative Thomas Massie:<\/p>\n
Rep. Thomas Massie of Kentucky was one of two Republicans to vote against the House measure, calling it a \u201cdebt bomb ticking\u201d and noting that it \u201cdramatically increases deficits in the near term.\u201d<\/em><\/p><\/blockquote>\nRepresentative Scott Perry (R-PA)., a loyal MAGA member, says Elon Musk was “right to call out House Leadership” this week. Our friend\u00a0Dr. Ron Paul<\/a>\u00a0agrees:<\/p>\n\n\n\nThankful for the “Elon-Quake” from\u00a0@elonmusk<\/a>\u00a0yesterday, warning that the “Big Beautiful Bill” is a huge danger to our future, our kids’ future, and our grandkids’ future…\u00a0https:\/\/t.co\/RcmlIO5AyD<\/a><\/p>\n\u2014 Ron Paul (@RonPaul)\u00a0June 4, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\nEven die-hard Trump loyalist Marjorie Taylor Greene (R-GA) now\u00a0publicly\u00a0regrets\u00a0<\/strong>her vote<\/a>\u00a0in favor of the bill.<\/p>\nWhat\u2019s the problem? According to Senator Paul:<\/p>\n
The math doesn\u2019t really add up.<\/em><\/p><\/blockquote>\nIt\u00a0really does<\/strong>\u00a0come down to simple math.<\/p>\nYes, growing the\u00a0real\u00a0<\/em>economy (not GDP, that\u2019s an abstraction<\/a>, but\u00a0our national prosperity)<\/em>\u00a0is\u00a0good<\/strong>.<\/p>\nEconomic growth means\u00a0more jobs, more business investment\u00a0<\/em>and\u00a0greater productivity\u00a0<\/em>\u2013 all of which boost workers\u2019 incomes and\u00a0everyone\u2019s\u00a0<\/em>standard of living. The government benefits by collecting greater tax revenues \u2013 which\u00a0could\u00a0<\/em>help to pay down the debt, increasing our purchasing power.<\/p>\nBut that\u2019s not how our federal government works. If you\u2019ve been paying attention for even five minutes, you\u2019ve figured them out:<\/p>\n
\n- During the good times, increased tax revenue means they have\u00a0more money to spend\u00a0<\/em><\/li>\n
- During the bad times, decreased tax revenue means they\u00a0have to spend money\u00a0<\/em>to boost the economy<\/li>\n<\/ul>\n
Take a look at annual federal expenditures since 2000 \u2013 see how the line consistently trends up, with higher highs and higher lows?<\/p>\n
![\"\"](\"https:\/\/stateofthenation.info\/wp-content\/uploads\/2025\/06\/Screen-Shot-2025-06-29-at-7.55.05-AM.png\")
<\/p>\n
All this debt isn’t just an abstract economic concern. It has\u00a0real effects<\/strong>\u00a0on every American family…<\/p>\nMore debt cannot solve the debt problem<\/h2>\n
Now, if you\u2019re new to the world of how money and spending and economics really works, then you may not understand why federal deficit spending and a rising national debt is a bad thing.<\/p>\n
In a nutshell \u2013 more deficit spending and more national debt means we all get less for our money. Federal debt and federal spending cause inflation.<\/p>\n
But don\u2019t take my word for it!<\/em>\u00a0William W. Beach with the Economic Policy Innovation Center offers\u00a0just<\/em><\/strong>\u00a0one<\/em><\/strong>\u00a0recent\u00a0example<\/a>\u00a0from 2020-2021:<\/p>\nAs a result of<\/em>\u00a0unprecedented deficit spending<\/em><\/strong>\u00a0and financial accommodation of these\u00a0<\/em>deficits\u00a0<\/em><\/strong>by the Federal Reserve, nearly\u00a0<\/em>historic inflation occurred<\/em><\/strong>. [emphasis added]\u00a0<\/em><\/p><\/blockquote>\nRemember the inflation over the last few years? How everyday Americans struggled to make ends meet while their purchasing power plummeted?<\/p>\n
Yes<\/strong>, that was caused by the\u00a0massive<\/em><\/strong>\u00a0amount of government spending<\/strong>\u00a0during the pandemic panic.<\/p>\nThe question of whether the federal government\u00a0needed\u00a0<\/em><\/strong>to spend that money due to the pandemic and lockdowns\u00a0doesn\u2019t matter.\u00a0<\/em>The national debt rose by\u00a0$13 trillion\u00a0<\/em><\/strong>from 2020-2024!<\/p>\nRay Dalio and Jamie Dimon, Senator Paul and Representative Perry\u00a0all have the same concern.\u00a0<\/em>That the Big Beautiful Bill will destroy our purchasing power faster than it drives economic growth.<\/p>\nTo be clear, though, those dissenting voices are in the minority.<\/p>\n
Congress is incapable of solving this problem<\/h2>\n
When our Founding Fathers gave Congress \u201cthe power of the purse<\/a>,\u201d the responsibility to tax and spend public money for the national government, they did so within\u00a0strict limits.\u00a0<\/em>Because our nation was on a\u00a0gold standard<\/a>. Congress didn\u2019t have the luxury of endless borrowing; every dollar spent had to be backed by physical gold and silver. Not simply conjured out of thin air.<\/p>\nAgain,\u00a0don\u2019t take my word for it!\u00a0<\/em>Back in 2013, economists Carmen Reinhart and Ken Rogoff (coauthors of must-read\u00a0This Time Is Different: Eight Centuries of Financial Folly)\u00a0<\/em>published a\u00a0review of the Federal Reserve<\/a>\u2019s 100-year anniversary. That paper contained this astonishing chart:<\/p>\n![\"Consumer](\"https:\/\/cdn-ilcknkl.nitrocdn.com\/EVXYJhTqbjcFrBfKCDCtJHoclSEpwVSP\/assets\/images\/optimized\/rev-a60f1c7\/www.birchgold.com\/wp-content\/uploads\/2025\/06\/consumer-price-index-1775-2012.jpg\")
Yellow shading indicates years the U.S. dollar was backed by gold or silver. Source:\u00a0Shifting Mandates<\/a>: The Federal Reserve\u2019s First Centennial by Reinhart & Rogoff.<\/em><\/figcaption><\/figure>\nYou can clearly see that, except for times of war, the cost of living was\u00a0virtually unchanged\u00a0<\/em>for over a century! From about 1780-1905, buying a house and raising children and sending them to school and feeding your family \u2013 it\u00a0all cost the same.\u00a0<\/em>Prices did rise during times of crisis, because Congress sold debt to finance wars. But when the crisis was over, the debt was paid back\u00a0and prices came back down!\u00a0<\/em><\/p>\nI added the yellow shading to indicate the gold standard (that brief interruption in the middle is due to the Civil War). Note how the cost of living soared ever since.<\/p>\n
As enraging as I find this, there\u2019s\u00a0very little\u00a0<\/em>I can do about it.<\/p>\nI can\u2019t make Congress take our national deficit seriously. I can\u2019t prevent the federal government from spending money. I cannot return our nation to the gold standard.<\/p>\n
What I\u00a0can do<\/strong>, though, is to make sure my personal financial situation is sound. We can\u2019t return the nation to the gold standard, but we can put ourselves on our own, personal gold standards. We can incorporate the wisdom of our Founding Fathers (look at that chart again!)<\/p>\n
What do you do if you find that you consistently overspend your income, borrowing money just to meet your obligations? If it\u2019s you or me, we find ways to cut costs or make more money so that we can live within our means. After all, no money means no food or shelter.<\/p>\n
That\u2019s not how the federal government works, though.<\/p>\n
The latest fiscal budget, also known as the Big Beautiful Bill,\u00a0does\u00a0<\/em>cut costs… but increases spending a lot more. And that is part of what is causing some people, including debt hawks and fiscally conservative Republicans, to speak out. To break ranks. Even to say they “regret” voting for it!<\/p>\n That’s mostly politics, though. We’ll start there, then talk through the economic impact this deficit spending problem has on you and me.<\/p>\n Before we get into what they said, there\u2019s some details about the \u201cBig Beautiful Bill\u201d to go over so that you can have\u00a0some context<\/a>:<\/p>\n The Committee for a Responsible Federal Budget estimates the bill, as written, would add about\u00a0$3.1 trillion\u00a0<\/strong>to the national debt over a decade with interest, to\u00a0a total $53 trillion.<\/strong>\u00a0The Penn Wharton Budget Model estimates a higher tally: $3.8 trillion, including interest and economic effects.<\/em><\/p><\/blockquote>\n More<\/em>\u00a0than an\u00a0extra<\/em>\u00a0three\u00a0trillion<\/em><\/strong>\u00a0dollars to the national debt!<\/p>\n What happened to DOGE? What happened to being responsible with\u00a0our<\/em><\/strong>\u00a0money and reducing the budget deficit at the same time?<\/p>\n Maybe that’s why former DOGE head Elon Musk has been\u00a0blowing up his X account<\/a>\u00a0with attacks on Congress for passing the 2025 budget. I’m not sure whether he’s more angry over being sidelined, or genuinely outraged over the additional spending. Musk seems determined to have a blistering public feud with the President over this. (Let’s be honest, though \u2013 trading barbs on social media is\u00a0not\u00a0<\/em>going to fix anything.)<\/p>\n Musk is not the only outspoken CEO who has concerns about the federal deficit and the national debt. Erik Revell with\u00a0Fox Business<\/em>\u00a0writes<\/a>,<\/p>\n JPMorgan Chase CEO Jamie Dimon warned in a new interview that the U.S. government’s rising debt and budget deficits are a problem\u2026 and offered his thoughts on how reforms should move forward.<\/em><\/p><\/blockquote>\n Now, remember, Jamie Dimon was considered a short-list candidate for Secretary of the Treasury last year. (In other words, a\u00a0much more credible source<\/em>\u00a0than Musk.) Rather than ramping up deficit spending, Dimon suggested:<\/p>\n “The real focus should be growth, pro-business, proper deregulation, permitting reform, getting rid of blue tape, getting skills in schools, get that growth going \u2013 that’s the best way.”<\/em><\/p><\/blockquote>\n Note:\u00a0<\/strong>I never saw the words \u201cblue tape\u201d used like that before, so I looked it up. We all know about \u201cred tape\u201d \u2013 government regulations at the federal, state, county and city levels that make it impossible to accomplish anything.\u00a0\u201cBlue tape\u201d<\/a>\u00a0is\u00a0the same problem<\/em>, but one that comes\u00a0from the sector itself,\u00a0<\/em>whether from other businesses in the same industry, trade groups or non-government watchdogs.<\/p>\n Bridgewater founder Ray Dalio has warned us repeatedly of an\u00a0\u201ceconomic heart attack\u201d<\/a>\u00a0due to continued deficit spending and the unsustainable national debt. In fact, he just released a book on exactly this topic (summary here<\/a>).<\/p>\n Shark Tank star Kevin O’Leary\u00a0has some concerns<\/a>, too:<\/p>\n I read all these bills through the eyes of small business… Somebody should fix this in the big, beautiful bill, because it\u2019s not beautiful for small business.<\/em><\/p><\/blockquote>\n The bipartisan\u00a0Peter G. Peterson Foundation<\/a>\u00a0issued a grim forecast:<\/p>\n Over the next decade, the U.S. government\u2019s interest payments on the national debt are now projected to total $13.8 trillion \u2013 the highest dollar amount for interest in any historical 10-year period and nearly double the total spent over the past two decades after adjusting for inflation. In fact, by pretty much any measurement, interest on the national debt will soon grow beyond its highest level since 1940, when such data were first collected.<\/em><\/p><\/blockquote>\n Even worse, the organization estimates that\u00a0interest payments alone\u00a0<\/em>on the national debt would consume 18.4% of all government revenue. That’s a\u00a0lot\u00a0<\/em>to pay for debt service, and it’s only going to get worse.<\/p>\n Possibly in response to these concerns, or maybe because they finally got a chance to actually read all 1,000+ pages of the bill, some major GOP figures are now calling the nation\u2019s economic future into question.<\/p>\n Two notable GOP stalwarts spoke up against the \u201cBig Beautiful Bill\u201d \u2013 Kentucky Senator Rand Paul and Representative Thomas Massie:<\/p>\n Rep. Thomas Massie of Kentucky was one of two Republicans to vote against the House measure, calling it a \u201cdebt bomb ticking\u201d and noting that it \u201cdramatically increases deficits in the near term.\u201d<\/em><\/p><\/blockquote>\n Representative Scott Perry (R-PA)., a loyal MAGA member, says Elon Musk was “right to call out House Leadership” this week. Our friend\u00a0Dr. Ron Paul<\/a>\u00a0agrees:<\/p>\n Thankful for the “Elon-Quake” from\u00a0@elonmusk<\/a>\u00a0yesterday, warning that the “Big Beautiful Bill” is a huge danger to our future, our kids’ future, and our grandkids’ future…\u00a0https:\/\/t.co\/RcmlIO5AyD<\/a><\/p>\n \u2014 Ron Paul (@RonPaul)\u00a0June 4, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n Even die-hard Trump loyalist Marjorie Taylor Greene (R-GA) now\u00a0publicly\u00a0regrets\u00a0<\/strong>her vote<\/a>\u00a0in favor of the bill.<\/p>\n What\u2019s the problem? According to Senator Paul:<\/p>\n The math doesn\u2019t really add up.<\/em><\/p><\/blockquote>\n It\u00a0really does<\/strong>\u00a0come down to simple math.<\/p>\n Yes, growing the\u00a0real\u00a0<\/em>economy (not GDP, that\u2019s an abstraction<\/a>, but\u00a0our national prosperity)<\/em>\u00a0is\u00a0good<\/strong>.<\/p>\n Economic growth means\u00a0more jobs, more business investment\u00a0<\/em>and\u00a0greater productivity\u00a0<\/em>\u2013 all of which boost workers\u2019 incomes and\u00a0everyone\u2019s\u00a0<\/em>standard of living. The government benefits by collecting greater tax revenues \u2013 which\u00a0could\u00a0<\/em>help to pay down the debt, increasing our purchasing power.<\/p>\n But that\u2019s not how our federal government works. If you\u2019ve been paying attention for even five minutes, you\u2019ve figured them out:<\/p>\n Take a look at annual federal expenditures since 2000 \u2013 see how the line consistently trends up, with higher highs and higher lows?<\/p>\n All this debt isn’t just an abstract economic concern. It has\u00a0real effects<\/strong>\u00a0on every American family…<\/p>\n Now, if you\u2019re new to the world of how money and spending and economics really works, then you may not understand why federal deficit spending and a rising national debt is a bad thing.<\/p>\n In a nutshell \u2013 more deficit spending and more national debt means we all get less for our money. Federal debt and federal spending cause inflation.<\/p>\n But don\u2019t take my word for it!<\/em>\u00a0William W. Beach with the Economic Policy Innovation Center offers\u00a0just<\/em><\/strong>\u00a0one<\/em><\/strong>\u00a0recent\u00a0example<\/a>\u00a0from 2020-2021:<\/p>\n As a result of<\/em>\u00a0unprecedented deficit spending<\/em><\/strong>\u00a0and financial accommodation of these\u00a0<\/em>deficits\u00a0<\/em><\/strong>by the Federal Reserve, nearly\u00a0<\/em>historic inflation occurred<\/em><\/strong>. [emphasis added]\u00a0<\/em><\/p><\/blockquote>\n Remember the inflation over the last few years? How everyday Americans struggled to make ends meet while their purchasing power plummeted?<\/p>\n Yes<\/strong>, that was caused by the\u00a0massive<\/em><\/strong>\u00a0amount of government spending<\/strong>\u00a0during the pandemic panic.<\/p>\n The question of whether the federal government\u00a0needed\u00a0<\/em><\/strong>to spend that money due to the pandemic and lockdowns\u00a0doesn\u2019t matter.\u00a0<\/em>The national debt rose by\u00a0$13 trillion\u00a0<\/em><\/strong>from 2020-2024!<\/p>\n Ray Dalio and Jamie Dimon, Senator Paul and Representative Perry\u00a0all have the same concern.\u00a0<\/em>That the Big Beautiful Bill will destroy our purchasing power faster than it drives economic growth.<\/p>\n To be clear, though, those dissenting voices are in the minority.<\/p>\n When our Founding Fathers gave Congress \u201cthe power of the purse<\/a>,\u201d the responsibility to tax and spend public money for the national government, they did so within\u00a0strict limits.\u00a0<\/em>Because our nation was on a\u00a0gold standard<\/a>. Congress didn\u2019t have the luxury of endless borrowing; every dollar spent had to be backed by physical gold and silver. Not simply conjured out of thin air.<\/p>\n Again,\u00a0don\u2019t take my word for it!\u00a0<\/em>Back in 2013, economists Carmen Reinhart and Ken Rogoff (coauthors of must-read\u00a0This Time Is Different: Eight Centuries of Financial Folly)\u00a0<\/em>published a\u00a0review of the Federal Reserve<\/a>\u2019s 100-year anniversary. That paper contained this astonishing chart:<\/p>\n You can clearly see that, except for times of war, the cost of living was\u00a0virtually unchanged\u00a0<\/em>for over a century! From about 1780-1905, buying a house and raising children and sending them to school and feeding your family \u2013 it\u00a0all cost the same.\u00a0<\/em>Prices did rise during times of crisis, because Congress sold debt to finance wars. But when the crisis was over, the debt was paid back\u00a0and prices came back down!\u00a0<\/em><\/p>\n I added the yellow shading to indicate the gold standard (that brief interruption in the middle is due to the Civil War). Note how the cost of living soared ever since.<\/p>\n As enraging as I find this, there\u2019s\u00a0very little\u00a0<\/em>I can do about it.<\/p>\n I can\u2019t make Congress take our national deficit seriously. I can\u2019t prevent the federal government from spending money. I cannot return our nation to the gold standard.<\/p>\n What I\u00a0can do<\/strong>, though, is to make sure my personal financial situation is sound. We can\u2019t return the nation to the gold standard, but we can put ourselves on our own, personal gold standards. We can incorporate the wisdom of our Founding Fathers (look at that chart again!)<\/p>\nAdding another $3-$3.8 trillion to the national debt?<\/h2>\n
Republicans begin to question national debt sustainability<\/h2>\n
\n
\n
<\/p>\nMore debt cannot solve the debt problem<\/h2>\n
Congress is incapable of solving this problem<\/h2>\n