Causes of Uncontrollable US Public Spending and Debt
Quoth the Raven
· QTR’s Fringe Finance
· May 20, 2026 at 09:45
· ⏱ 9 min read
| Read on Substack ↗
Summary
The article argues that US public spending became uncontrollable because the gold standard was abandoned, enabling endless money printing, and because welfare programs like Social Security and the Great Society shifted responsibility from individuals to government. For markets, this implies a long-term dollar debasement risk and eventual crisis, but no actionable trade setups are offered.
•The US left the gold standard in 1971, allowing the monetary base to rise from $85 billion to $5,388 billion (63×) by February 2026.
•Annual budget deficits grew from $3 billion in 1971 to a projected $1.8 trillion in fiscal 2026, a 600× increase.
•Total US federal debt rose from $424 billion to $38.5 trillion over the same period, a 91× increase.
•The author claims Social Security (1935) was the first major welfare program that corrupted personal responsibility, with 40% of retirees now relying solely on it.
•Lyndon Johnson’s Great Society programs expanded welfare and cemented the idea that government is responsible for individual financial security.
•President Trump is reported to be seeking an additional $0.5 trillion per year for military spending, adding to deficit pressures.