South Cook News

As the nation’s debt grows, many Representatives’ concerns grow along.

“Washington doesn’t understand basic money management,” Orland Park Mayor Keith Pekau wrote on Facebook. “We can’t print money without consequences, and we can’t spend more than we bring in. It’s time to balance the budget, address the national debt, and bring common sense back to our treasury.”

In February, the United States’ gross national debt passed $30 trillion for the first time, Forbes reported. The higher national debt can impact the everyday lives of Americans through higher interest rates, higher prices for products, and lower returns on investments.

“Regardless of political affiliation, parties in power have run up the deficit through higher spending and lower revenue collection,” Brian Rehling, head of Global Fixed Income Strategy at Wells Fargo Investment Institute, said in Forbes.

Forbes also reported that governments with large debts and deficits run the risk of exacerbating inflation. Inflation functions as an additional tax on consumers, while also causing uncertainty for investors, leading to slowed economic growth.

Investopedia wrote the U.S. got firsthand experience with debt after the Revolutionary War and future wars exacerbated the U.S. debt.

The U.S. Bureau of Labor Statistics issued its latest Consumer Price Index (CPI) summary on May 11, showing that, in April, prices had increased by 8.3% over the preceding twelve-month period. Costs rose by 0.3% in April this year after increasing by 1.2% in March. Food prices rose by 0.9% in April. Food costs have increased by 9.4% in the last twelve months, representing the largest rise in prices since 1982. In the last twelve months, the price of new vehicles rose by 13.2% while the price of used vehicles rose by 22.7%.

Investopedia added that although the U.S.’s Gross Domestic Product (GDP) is tied to its debt, GDP is hard to accurately measure.

As of 2019, Illinois had the fourth highest outstanding government debt in the country, Statista reported. Illinois’ debt stood at $165.1 billion, less than only California, New York, and Texas. 44 states and Washington DC have outstanding debts of less than $100 billion.

“The only way to get more revenue is to increase taxes on the American people or reduce spending,” Daniel Rodriguez, COO at Hill Wealth Strategies, said in Forbes. “The government may choose to reduce spending on things like infrastructure, social safety nets, first responders, and education. Those programs have direct impacts on Americans’ day-to-day lives.”

During his term as mayor, Pekau has doubled investments in the village’s infrastructure while managing to reduce total operating costs by 14%, according to his website. Pekau also lowered property tax rates and paid down more than $50 million of the village's debt.