Senate Hearing: The Impact of National Debt on Federal Spending

Original title: THE EFFECT OF BORROWING ON FEDERAL SPENDING

Record date · January 1, 2017

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What This Bill Does

This document is a transcript of a 2017 Senate subcommittee hearing regarding the national debt, the federal , and the potential economic consequences of government borrowing. Experts and senators discussed whether raising the debt limit should be tied to fiscal reforms and analyzed the government's ability to meet obligations without additional borrowing.

Why it matters

The hearing examines the federal government's $20 trillion debt load and the legislative debate over whether to raise the , which determines the government's legal authority to continue borrowing to fund public services and obligations.

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

U.S. Taxpayers

The national debt level and borrowing policies influence federal budget priorities and the long-term fiscal health of the country.

Directly affected

Federal Employees and Military Personnel

These groups rely on federal appropriations that are impacted by the government's ability to borrow and manage debt.

Key Facts

The hearing took place on March 29, 2017, in the Dirksen Senate Office Building.
The national debt reached approximately $20 trillion as of March 2017.
The debt equates to approximately $60,000 per American citizen.
Senator Rand Paul stated that the federal government can fund 86 percent of its operations without net borrowing on an annualized basis.

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The hearing explored the argument that raising the debt ceiling should be accompanied by fiscal reforms rather than being an automatic process.
The subcommittee heard testimony from three expert witnesses: David M. Walker, Veronique de Rugy, and Mark M. Zandi.

Frequently Asked Questions

What is the debt ceiling?

The is the legal limit on the amount of national debt that the U.S. Treasury can incur.

Can the government function if the debt ceiling is not raised?

Senator Paul argued that the government could still fund 86 percent of its obligations, such as interest on debt, troop salaries, and Social Security, without .

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