July 23rd 2025 - American Trilemma

The unsustainability of the United States' public debt has emerged as a critical existential threat to its future, Western civilisation, and humanity at large. As of 2025, the U.S. debt-to-GDP ratio stands at 118% projected to balloon further without structural reforms. The political establishment’s habitual reliance on short-term fixes—such as deferring fiscal adjustments or monetising debt—has entrenched a cycle of inflationary pressure, wealth disparity, and social fragmentation. These fissures are exacerbated by racial and tribal divisions, while the state increasingly distracts populations with cultural wars or external conflicts in regions like the Middle East and Eastern Europe. Yet, amid the chaos, three distinct approaches to addressing the crisis have crystallised, each symbolised by a prominent figure: Bernie Sanders’ progressive taxation, Elon Musk’s technocratic cost-cutting, and Donald Trump’s aggressive tariff regime.

Bernie Sanders’ advocacy for higher taxes on billionaires and corporations represents a return to post-war fiscal pragmatism. In the 1950s, top marginal tax rates exceeded 90%, enabling the U.S. to manage World War II debt without triggering economic collapse. Today, the wealth concentration under neoliberalism—where the top 1% hold 32% of national wealth—has left younger generations economically dispossessed, fueling support for Sanders’ left-wing populism. Critics argue this approach risks stifling innovation and investment, yet historical precedent suggests that high tax rates on elites, coupled with robust public spending on infrastructure and education, can stabilise debt dynamics.

However, the political feasibility of such a plan remains dubious. The U.S. establishment, beholden to corporate interests, has consistently resisted wealth taxes, framing them as “anti-American.” Even if implemented, the globalised nature of capital makes enforcement challenging, as corporations and individuals exploit tax havens or lobby for loopholes. The Tax Foundation estimates that Trump’s 2025 tariffs will raise $171.1 billion annually, dwarfing recent corporate tax collections yet this does not address the systemic revenue shortfalls caused by decades of deregulation and tax cuts.

Elon Musk’s Department of Government Efficiency (DOGE), launched under Trump’s second term, embodies a technocratic push to slash federal spending. The project targets bureaucratic inefficiencies, entitlement programs, and subsidies, aiming to streamline governance through automation and privatisation. While appealing in theory, this approach faces insurmountable political headwinds. Programs like Social Security and Medicare, disproportionately benefiting Baby Boomers—the wealthiest and politically most powerful generation in history—are sacrosanct to their demographic clout.

DOGE’s premise assumes that technological innovation can replace systemic fiscal discipline. Yet, austerity measures risk eroding social cohesion, particularly as younger generations already grapple with stagnant wages and unaffordable housing. Musk’s Silicon Valley ethos, which glorifies disruption, fails to account for the human cost of dismantling safety nets, leaving this solution more aspirational than practical.

Trump’s 2025 “Liberation Day” tariffs, imposing a universal 10% duty on imports with higher rates for trade-deficit nations, seek to externalise the debt burden. The plan aims to generate $5.2 trillion over a decade ostensibly to fund domestic priorities and offset expiring tax cuts. However, this strategy weaponises economic interdependence, inviting retaliatory measures and destabilising global supply chains.

Trump’s tariffs have already strained U.S. financial markets, triggering a 20% S&P 500 decline and a flight from Treasury bonds. Although the measures temporarily boost revenue, they risk long-term growth by inflating consumer prices and alienating trade partners. The Mar-a-Lago Accord’s proposed “sovereign wealth fund” to channel foreign debt purchases into U.S. interests further erodes trust in America’s fiscal reliability, transforming allies into adversaries.

Each solution reflects a flawed attempt to address a crisis rooted in decades of fiscal irresponsibility. Sanders’ taxation model, while equitable, is politically marginalised. Musk’s DOGE project, despite its technocratic allure, neglects the social contract. Trump’s tariffs, meanwhile, epitomise a zero-sum worldview, sacrificing global stability for short-term gains.

The establishment’s preference for distractions—whether through culture wars or military adventures—only accelerates this trajectory. The lack of coherent policy underscores a deeper malaise: the prioritisation of partisan survival over national solvency.

The U.S. debt crisis is not merely an economic issue but a civilisational one. Current proposals fail to reconcile immediate fiscal demands with sustainable long-term growth. Sanders’ taxes, Musk’s efficiency, and Trump’s tariffs all offer partial remedies, yet none address the intertwined challenges of debt, inequality, and geopolitical interdependence. Without a paradigm shift from the “kicking the can” mentality, the U.S. risks triggering a dual apocalypse: domestic collapse and global economic warfare. The road to salvation lies not in ideological silos but in pragmatic synthesis—a reality increasingly obscured by the noise of political theatrics.

Blog in Croatian https://draxblog.com
Blog in English https://draxreview.wordpress.com/
Original Hive blog (Film & TV) https://hive.blog/@drax

LeoDex: https://leodex.io/?ref=drax
Inleo: https://inleo.io/signup?referral=drax.leo
Unstoppable Domains: https://unstoppabledomains.com/?ref=3fc23fc42c1b417
Hiveonboard: https://hiveonboard.com?ref=drax
Bitcoin Lightning HIVE donations: https://v4v.app/v1/lnurlp/qrcode/drax
Rising Star game: https://www.risingstargame.com?referrer=drax
1Inch: https://1inch.exchange/#/r/0x83823d8CCB74F828148258BB4457642124b1328e

BTC donations: 1EWxiMiP6iiG9rger3NuUSd6HByaxQWafG
ETH donations: 0xB305F144323b99e6f8b1d66f5D7DE78B498C32A7

Posted Using INLEO