The U.S. Debt Spiral Dilemma: Why Political Elites Are Powerless to Turn the Tide

Today, the predicament facing the United States is no longer a simple economic problem but a deadlock caused by a systemic political-capital alliance. The logical chain behind this is tightly interconnected, ultimately pointing to a brutal fact: contemporary America has no leader as bold as Roosevelt who dares to declare war on capital.

The National Dilemma Behind the Numbers

The US government has long fallen into a cycle of deficits. The national debt has surpassed $34 trillion, and this figure continues to swell each year. More painfully, interest payments have become the largest single expenditure for the federal government, even surpassing military spending. Money is being spent faster and faster, but tax revenues are growing sluggishly.

The government’s response to this situation is limited to three options: either cut spending, raise taxes, or continue borrowing. But the first two options have hit a brick wall—wealthy elites have already used political lobbying to turn their assets into “forbidden zones,” and social welfare for the lower classes has become the easiest target for cuts.

Thus, the third path has become the only choice. The government relies on a continuous influx of new debt to keep operating, supported by the Federal Reserve’s relentless money printing. No matter how much money is spent, the national debt keeps soaring, inflation accelerates, and the purchasing power of ordinary people’s money continues to decline.

Political Choices Under Capital Lock

The root cause of all this boils down to six words: money hijacks politics.

US politicians need enormous campaign funds, which come from top Wall Street financial institutions and billionaires. Once in office, politicians naturally become agents of their financial backers. Whenever Congress proposes higher taxes on the wealthy or stronger financial regulation, lobbying teams immediately mobilize to ensure these proposals are killed in committee.

This cycle has persisted for decades, and the entire political ecosystem has been deeply corrupted by capital. The two parties may appear to oppose each other, but in reality, they serve different capital groups. When Democrats are in power, the poor do not see substantial help; when Republicans govern, the situation does not improve. The only consistent fact is that the tax rate on the wealthy remains at historic lows, while social welfare is repeatedly cut back.

The Ghost of the Roosevelt Era

Looking back at history, Roosevelt faced a situation very similar to today—monopoly by big capital, wealth disparity, social unrest. But Roosevelt had the courage. He implemented the New Deal, established social security, used progressive taxation to narrow the wealth gap, and took tough measures to curb unchecked capital expansion. At that time, the US government still had authority and could restrain financial oligarchs.

And now? The political arena can no longer find such figures. Modern politicians are preoccupied with re-election, fundraising, and pleasing their benefactors. No one dares to truly challenge the wealthiest. Tax reform has become an eternal slogan; capital gains taxes remain in the discussion phase, and redistribution policies are far off.

The Snowball Effect of Systemic Crisis

The consequences of this political deadlock are systemic. The national debt grows heavier, requiring more money to fill the gaps. The more money is spent, the more the actual value of the dollar is diluted, shaking global confidence in the dollar’s reserve currency status. Once markets collectively doubt that the US government can repay its debts or improve its fiscal situation through taxation, the dollar’s credibility will face a real crisis.

Deeper still is the threat of social tensions intensifying. On one side, Wall Street elites celebrate record highs on private islands; on the other, the lower classes struggle to make ends meet. The wealth gap widens, and social cohesion weakens. When this tension exceeds a critical point, police and military forces will be unable to contain it. History repeatedly proves that when wealth is extremely concentrated and most people are struggling to survive, social unrest becomes inevitable.

An Unrecoverable System

The most despairing aspect is that the US has lost its ability to self-correct. Its economic foundation has been thoroughly corrupted by capital, and the superstructure is teetering. To revive its strength, the first step is to resolve the internal mess—allow the wealth locked in mansions and offshore accounts to flow, and make the asset-holding classes bear their social responsibilities.

But under the current system, this is almost impossible. No leader at Roosevelt’s level is willing to withstand the counterattack from financial oligarchs, nor do politicians dare to risk losing support from their benefactors to push genuine reforms.

Therefore, America’s future is likely to gradually decline amid this helpless deadlock. The grievances of the poor gather on the streets, the wealth of the rich sleeps in offshore accounts, and the government in the middle struggles on the brink of debt crisis. Money cannot be spent, reforms cannot be pushed, credit is being depleted, and confidence is collapsing.

This is the most authentic portrait of today’s America.