Minnesota
Good Question: How did the U.S. debt get so high?
MINNEAPOLIS — If you wince when look at your monthly credit card bill, you might not believe what the U.S. government has racked up.
The national debt now tops more than $34 trillion. That’s a new record difficult to comprehend — and there are no signs of slowing it down.
How did the debt get so high? And will it need to be paid off?
Well, that goal might be wishful thinking.
The debt is one of the rare times people have a chance to use the word “trillion” in a sentence without exaggerating some number.
It stands at $34,009,690,055,595 as of Jan. 9. Elon Musk, the world’s richest person, is worth more than $241 billion. You’d need at least 140 of him to equal the debt.
“The first thing is about one-fourth to one-third of it doesn’t count,” said Christopher Phelan, an economics professor at the University of Minnesota. “It’s debt that’s held by another part of the government. So, it would be like the wife owing the husband money. It doesn’t affect the household. But the rest of it is still a huge number.”
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How did the U.S. accrue such a huge debt? One of the main culprits is consistently overspending. When the federal government spends more than its budget, it creates a deficit. In the fiscal year of 2023, it spent about $381 billion more than it collected in revenues.
To pay that deficit, the government borrows money. That can happen by selling marketable securities like treasury bonds. The national debt is the accumulation of the borrowed money, plus interest.
“Right now the federal government is spending 1.5 times as much as its taking in. So, an analogy that I’d like to give is imagine that a couple is making $80,000 between the two of them and spending $120,000 a year,” said Phelan. We asked him if the U.S. is the equivalent of a person who only makes the minimum payments on a credit card. Phelan took it a step further saying, “The U.S. is like somebody who makes less than the minimum payment on their credit card.”
The country was literally built on debt. It was $75 million in the red after the Revolutionary War thanks to loans from investors and countries like France.
The Civil War led a to a huge spike, raising the debt from $65 million in 1860 to nearly $3 billion in 1865 when the war ended. Costly wars proved to be a theme in our nation’s history. The debt was at $49 billion right before the U.S. entered World War II. When the war ended, it was $260 billion. It began rising at a fast rate in the 1980’s and was accelerated through events like the Iraq Wars and the 2008 Great Recession. Most recently, the debt made another big jump thanks to the pandemic with the federal government spending significantly more than it took in to keep the country running.
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Who do we owe the money to? “Mostly ourselves,” said Phelan. “A lot of pension funds own government debt, money market funds own government debt and then people own those money market funds.” The U.S. also has debts to other countries.
Where does the money come from that would go towards paying off the debt? It ultimately comes down to the U.S. taxpayers. That means in order to pay it off, or at least make a larger dent in the debt, the federal government would have to raise taxes and cut spending. “The problem is way bigger than if we just cut foreign aid,” said Phelan.
With such a high debt, how does the country function? Phelan said it comes down to the debt to gross domestic product (GDP) ratio. That equation shows a country’s ability to pay down its debt. “This ratio is considered a better indicator of a country’s fiscal situation than just the national debt number because it shows the burden of debt relative to the country’s total economic output and therefore its ability to repay it,” according to the U.S. Treasury’s website.
The current ratio in the U.S. is about 123 percent as of Sept. 2023. Two decades earlier in 2003, it was down to 60 percet. According to CEIC, the highest the ratio ever reached in the U.S. was 130.6 percent in March 2021, roughly one year into the pandemic.
While the ratio remains high for the country, Phelan said other countries are worse off, yet continue to run. Japan has a debt to GDP ratio that’s well over 200 percent, but that doesn’t mean countries should comfortably operate at those levels for a long time. “There is a limit, and it’s determined by when potential bond buyers say ‘I don’t think I’m gonna get the money back.’ And they demand a huge interest rate for risk of not getting the money back,” said Phelan, adding how that concern hasn’t happened yet for the U.S.
Minnesota
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Minnesota
‘No King’s’ Flagship Protest Features Star-Studded Lineup Of Performers
Millions of people around the country will take to the streets this Saturday in the latest round of “No Kings” protests that aim to denounce President Donald Trump’s subversion of the rule of law and attacks on democracy.
“Masked secret police terrorizing our communities. An illegal, catastrophic war putting us in danger and driving up our costs. Attacks on our freedom of speech, our civil rights, our freedom to vote. Costs pushing families to the brink. Trump wants to rule over us as a tyrant. But this is America, and power belongs to the people – not to wannabe kings or their billionaire cronies,” the NoKings website states.
The flagship event in St. Paul is expected to draw over 80,000 people to the Minnesota capital, including Oscar-winning actress Jane Fonda, legendary folk singer Joan Baez, rock icon Bruce Springsteen, and Sen. Bernie Sanders (I-Vt.).
It is one of 3,000 events planned nationwide, according to organizers.
“Our goal is to continue to build a peaceful and nonviolent movement that gets us to the place where we have a healthy, functioning democracy, and communities and state and country where we can all thrive,” Indivisible Twin Cities event organizer Rebecca Larson told Minnesota Public Radio.
The rally comes in the wake of Trump’s immigration crackdown in Minneapolis, which drew widespread national attention and resulted in the deaths of Americans Renee Nicole Good and Alex Pretti at the hands of federal agents.
Springsteen, who is scheduled to perform at Target Center in Minneapolis later this month, penned a protest song in honor of Good and Pretti titled “Streets of Minneapolis.” He also plans to perform at the rally on Saturday, the Minneapolis Star Tribune reported.
“When you have the opportunity to sing something where the timing is essential and if you have something powerful to sing, it elevates the moment, it elevates your job to another level. And I’m always in search of that,” Springsteen told the publication.
Saturday’s gatherings are the third such mass protests under the “No Kings” banner, the first of which was held last June as a counter-event to Trump’s military parade celebrating the 250th anniversary of the U.S. Army, which also fell on the president’s 79th birthday. The second “No Kings” protest occurred in October of last year.
Since then, a litany of events has captured the nation’s attention, including immigration crackdowns, government shutdowns, the fight over the release of the Epstein files and the ongoing war in Iran. “No Kings” organizers plan to hone in on Americans’ frustrations with these issues to increase turnout and attention for Saturday’s demonstrations.
“Now, President Trump has doubled down. His administration is sending masked agents into our streets, terrorizing our communities. They are targeting immigrant families, profiling, arresting, and detaining people without warrants. Threatening to overtake elections. Gutting healthcare, environmental protections, and education when families need them most,” the organization states on its website. “The president thinks his rule is absolute. But in America, we don’t have kings – and we won’t back down against chaos, corruption, and cruelty.”
Minnesota
Minnesota moose population is holding steady
DULUTH — Minnesota’s moose population has remained stable for another year, though it remains about half the size as two decades ago.
The Minnesota Department of Natural Resources said its annual aerial survey, conducted with the Fond du Lac Band of Lake Superior Chippewa and the 1854 Treaty Authority,
estimated
that approximately 4,470 moose remain in St. Louis, Lake and Cook counties, the animal’s typical range in the state.
That’s up about 400 from last year’s estimate.“Despite recent estimates suggesting relative stability in the population and reproductive success, Minnesota DNR researchers point out that Minnesota moose remain at risk,” the DNR said in a news release. “Climate change, parasites, habitat loss and predator impacts on calf survival all play a part in the long-term survival of the moose population.”
Jimmy Lovrien / Duluth Media Group
Northeastern Minnesota’s moose numbers crashed rapidly nearly two decades ago, from a modern high of 8,840 moose estimated in 2006 to just 2,700 by 2013. Their numbers have remained low but fairly stable since.
That rapid decline spurred an effort to reestablish moose habitat in the region. Now in its 15th year, there are promising signs that it is working.
Bringing moose habitat back
Moose thrive in young forests where they can reach and eat deciduous trees and brush while also having access to a few larger trees to shade under.
But most of Northeastern Minnesota is covered in mature forest that hasn’t been touched by processes that can produce such environments in a long time, namely, wildfires and logging.
“Across Minnesota over the past few decades, the forest is getting older, and so seeing this older forest and these lower moose numbers kind of get you thinking more critically about what needs to happen with habitat,” said Alyssa Roberts, forest wildlife specialist at the Ruffed Grouse Society and American Woodcock Society.
So, over the last 15 years, a collaborative of government agencies, Indigenous tribes and conservation groups has been allocated nearly $9 million from Minnesota’s Outdoor Heritage Fund through the Lessard-Sams Outdoor Heritage Council to restore some 24,000 acres of moose habitat. Another 3,000 acres or so will be restored through an America the Beautiful grant over the next two years.
The Ruffed Grouse Society and American Woodcock Society has served as sponsor of the collaborative since 2021.
“Historically, routine medium- or variable-intensity fires would have maintained this deciduous browse available on the landscape,” said Scott Johnson, the group’s forest conservation coordinator for Minnesota. “But with that lacking, mechanical treatments need to come in.”
When fire suppression snuffed out the naturally occurring fires, commercial logging operations could still leave landscapes in ways that benefit moose.
But with the decline in the region’s wood products industry over the last 15 to 20 years, there are fewer places that need timber from Northeastern Minnesota.
Still, the collaborative can “piggyback” off wildfires and timber harvests that do occur, and begin to maintain those areas as moose habitat going forward, Johnson said.
“In a sustainable fashion for this to persist over a long period, ultimately, what we’re looking at is following up disturbances, or creating disturbances on purpose — prescribed fire, timber harvest, mechanical site preparation, brush sawing — to maintain and produce on these disturbed sites a mosaic of new conifers growing in, through planting or seeding, with a mix of accessible, high-quality browse,” Johnson said.
It seems to be working, said Chris Dunhum, associate director of resilience forestry at the Nature Conservancy, which is also part of the collaborative.
Moose are showing up and eating their way through the areas, as are juvenile moose, some of which were collared this winter and could offer researchers more insight into how the sites are used, he added.
In a long list of factors negatively affecting moose, Dunham said it is nice to have something that helps.
“If we think about climate change impacts, that’s really concerning and we can kind of feel sort of helpless at times … but then when we’re talking about moose habitat, we’ve seen that we can go out there and we can manipulate the habitat, and we know how to do that,” Dunham said. “And we’ve seen from the early monitoring that moose are actually using those sites.”
Climate change and parasites
Mike Schrage, the wildlife program manager for the Fond du Lac Band, said he’s of the camp that most of the moose decline is due to habitat loss now that there’s less logging and wildfires are suppressed.
But, he said, climate change represents “a long-term threat to our moose population” in a number of ways.
For one, moose are designed for cold climates and deep snow, making them ill-adapted for warmer climates and likely to face more heat stress, he said.
Contributed / Michigan Technological University
Additionally, climate change can boost parasites.
Thousands of winter ticks can latch onto a moose, causing it to scratch off its protective coat of hair in an attempt to rid itself of the ticks. “Certainly longer, warmer falls and earlier springs make for better conditions for winter tick survival and transmission to a moose host,” Schrage said. “So that’s not helpful.”
And then there’s brainworm, called P. tenuis, which is spread through white-tailed deer and snails, and, while harmless to deer, is usually fatal to moose. Moose in areas of higher deer densities are more likely to pick up the disease. It’s considered one of the major factors in Minnesota’s severe moose population decline over the past 20 years.
And milder winters can lead to more deer, Schrage said, boosting chances of brainworm transmission. Milder winters also mean more wolves, which, along with parasites, are known to kill moose calves needed to rebuild the population, Schrage said.
Research by the DNR, 1854 Treaty Authority, Grand Portage Band of Lake Superior Chippewa and the National Parks of Lake Superior kicked off this winter to further understand survival rates of juvenile moose and determine causes of mortality.
But among all the factors stressing moose, reestablishing habitat might be the most tangible solution so far.
“There are a lot of things that affected that precipitous decline in our moose population back in the early 2000s … habitat is the thing we knew that we could start affecting positively immediately,” Johnson said.
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