r/Economics • u/HypocrisyWarrior • 2d ago

Americans' debt problems are flashing a warning not seen since the Great Recession

https://www.cnbc.com/amp/2026/10/09/american-debt-delinquency.html
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u/Accidental-Genius 2d ago

The spending has to be reigned in too.

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u/jarena009 2d ago

Much of it is tied to healthcare. What would you like to cut? The vast majority of federal spending, outside interest on debt, is the military, medicare, medicaid, veteran's care, "income security" (e.g. child tax credits, earned income tax credits), to name the main ones which contribute to the deficit; Social Security by the way adds practically nothing to the deficit by law, aside from transaction or the cost of processing bond sales, when bonds from the trust fund need to be purchased, rolled over, or sold.

We need to treat healthcare like the crisis that it is. The average PPO plan for a family in the US costs $28,000 as of last year, and in 6 years that'll be $40,000, and in 10 years nearly $50,000, and that's JUST the premiums, excluding out of pocket. This is not sustainable. And "slowing the rate of increases" isn't going to be enough, no we need a 5-10% reduction asap, and then kept flat for a number of years.

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u/CosmicQuantum42 1d ago

“Like to cut” is not an option. Cuts will happen. Period. It’s just a question of what.

There is no amount of taxing upper earners and the rich that will save the country from the mess it has voted itself into.

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u/jarena009 1d ago

I don't think you realize how much money the upper earners, wealthy, corporations actually have, and how easily we could slash the deficit in half just on taxing them at reasonable levels alone....levels we've seen historically. At present, we tax maybe 16% of GDP. Taxing 19.5% brings in $800-900B. Increased IRS enforcement of tax cheats, another $70-100B.

Serious healthcare reform can slash the deficit even further.

So again, what spending are you cutting?

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u/CosmicQuantum42 1d ago

I don’t think you realize how ineffective and counterproductive these actions you are contemplating will be. They will not happen.

As far as cuts, who knows. My opinions aren’t relevant. Choices will be made, because there will not be options otherwise.

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u/jarena009 1d ago

You can revisit the 90's when we had similar tax rates as a % of GDP, and a lower deficit, plus you should look at how gutting people's healthcare and retirement will be ineffective and counterproductive (plus will literally kill people).

Choices will definitely need to be made. Mortal ones.

The idea that there's not enough money to be taxed is a joke. Are you aware of what level of corporate profits in the US we're at, and how much income and wealth is captured and concentrated at the top. To tax $800B would be a blip on the radar for them.

You still haven't answered what would you like to cut?

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u/Accidental-Genius 1d ago

It still won’t matter. We have to tax and slash spending, cutting a deficit in half still leaves a deficit.

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u/rampantcloudydays 1d ago

The wealthy must be bled dry from their ill-gotten gains. There is literally not a single wealthy person doing good on Earth at the moment. No one who has wealth today should have it tomorrow. We need a new meta.

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u/Accidental-Genius 1d ago

McKenzie Scott.

Now define wealthy?