Ever since the defeat of the Axis Powers in World War II, America has been admired around the world as a beacon of equality, freedom and opportunity. That admiration helped the United States become the world’s preeminent economic and military power over the last 80 years. While we have faced serious problems, like racial inequality, poverty and questionable wars, our elected representatives have usually been able to work together in an effort to address them. I fear that the era of America’s economic and moral dominance is now faltering and headed into a period of decline.
The so-called big, beautiful bill, which the US House of Representatives passed on May 22, is a symptom of the decline. It will greatly benefit the wealthy, while denying medical care, food assistance and other social safety-net programs to those on the lower income scale. The bill would substantially increase income inequality in the country and likely necessitate a $500 billion cut in Medicare spending. It is unfathomable that both Russ Fulcher and Mike Simpson voted for the bill and that Governor Brad Little strongly supported its passage. Unless the Senate stops the bill in its tracks, the states will have to increase their budgetary outlays or let their voters go without vital services.
The national debt consequences of the bill are also of great concern. It should be remembered that Trump added $8.4 trillion to the national debt during his first term, more than any other US President. His big, beautiful bill would add an additional $3.8 trillion to the debt, which would raise the debt from its current $36.2 trillion to a whopping $40 trillion. That is a very serious problem in itself, but made substantially worse by other destructive actions he has taken that will seriously hinder the nation’s ability to deal with that massive debt.
The U.S. lives wildly beyond its means by borrowing against the future. Instead of requiring wealthy corporations and individuals to pay their fair share of taxes, we simply finance the deficits by issuing government bonds. Since the mid-1990s the GOP has forgotten that budget deficits can be prevented by raising adequate revenue. Thus, the national debt has ballooned from $5.6 trillion in 2000 to $36.2 trillion at the end of 2024. About $8.5 trillion of the debt is held by foreign governments and investors. Foreigners have helped finance our debt because the U.S. has been regarded as a steady, reliable trustworthy nation. Our dollar is the coin of the international realm, and our government bonds have always been seen as a safe, reliable investment, particularly in times of international economic turmoil.
Donald Trump has shaken the world order by dumping on our friends and allies, including those closest to us–Canada, Mexico, the European Union, Japan and Korea.He has disregarded trading relationships that have made America the leader of the free world. Trump’s latest threat to impose 50% tariffs on European nations seems designed to drive away our steadiest, most-reliable trading partners and military allies. His erratic and self-defeating tariff actions have shown America to be an unreliable partner. Our friends and allies have started forging stronger trading relationships among themselves and with China, our chief international adversary. This will reverberate against U.S. economic and security interests well into the future.
The bond market has become increasingly edgy about Trump’s erratic behavior. Investors are concerned about the safety of U.S. bonds, as evidenced by an increasing interest rate on our nation’s bonded indebtedness. The big, beautiful bill promises to trigger a crisis in the bond market. A well-regarded economist has observed: “The U.S. government bond markets are already shaky, long-term interest rates are rising, and it seems that foreign investors are fleeing the United States.” It is inconceivable that such chaos in the economic foundation of our country could have occurred since January.
America has long been regarded as the moral beacon of the world. As President Reagan put it in his Farewell Address–”The shining city upon a hill.” That perception is no longer the case. A recent survey discloses that America’s worldwide popularity has suffered a collapse since January. China is now regarded more favorably than the United States. Trump is viewed more negatively (58%) than Vladimir Putin (49%) and Xi Jinping (31%). Those dismal numbers foretell a decline in America’s ability to sustain its position as the premier moral, economic and military power in the world.
