Reality quickly sets in as it becomes clear that the $1.7 trillion omnibus bill was a disaster for the national debt

Republicans were dealt a heavy hand when they took control of the U.S. House of Representatives earlier this year. The national debt was already pushing toward $32 trillion and Democrats controlled the White House and U.S. Senate.<br><br>Given the reality of the situation, it was obvious that any spending bill agreed to by Democrats and Republicans would result in a substantial increase in national debt.<br><br>The $1.7 trillion omnibus bill passed in December made it clear that it wouldn’t take much time for disappointment in the national debt to set in. Despite being hailed as a victory for bipartisanship, it will substantially increase the national debt, leaving future generations to pick up the tab.<br><br>What’s more, the bill’s passage marked the final nail in the coffin for the debt ceiling debate. It’s now clear that the debt ceiling is nothing more than a farce, with few politicians in Washington showing any willingness to stand up to the rapid growth of the national debt.<br><br>Over the last 50 years, the national debt has grown by 11%, on average, each year. By the time fiscal year 2023 is over, the national debt will be more than $31 trillion. The Congressional Budget Office (CBO) projects that by 2033, the national debt will be more than $50 trillion. That’s $150,000 per American citizen at today’s population numbers.<br><br>While it might seem unfathomable to imagine the national debt reaching those levels, it’s worth considering that the CBO’s estimates tend to be overly optimistic. In 2020, the CBO projected the national debt would be $27 trillion by 2030. Instead, it was more than $31 trillion. In just two years, the CBO was off by about 15%.<br><br>At 11% annual growth, the national debt will top $70 trillion by 2033. Historically, the federal government has found ways to spend more than it takes in. Tax increases have been used as an offset for more spending, meaning that growth in the national debt will only continue to worsen.<br><br>Rising interest rates and inflation will only make matters worse. The CBO projects that by 2030, interest on the national debt will top all spending categories, aside from Social Security and Medicare. Meanwhile, the CBO expects the inflation rate to remain above 3% over the next decade, which would continue to erode the purchasing power of the American consumer.<br><br>The $1.7 trillion omnibus bill, despite being deemed a failure of bipartisanship by some, sets the tone for future spending bills. It will be a challenge to find any agreement on spending that will prevent the national debt from surpassing $50 trillion by 2033.<br><br>At that point, the U.S. will be further down the path of becoming an authoritarian nation, with higher taxes and lower living standards as the government is forced to shore up the weight of the national debt.<br><br>The $1.7 trillion omnibus bill quickly laid bare the reality of the situation: the White House and Congress are largely unwilling and incapable of doing anything to mitigate the rapid growth of the national debt.