Howard Schultz is the billionaire, former CEO of Starbucks Coffee. He is also thinking about running as an independent candidate for President.
Schultz is considered a threat to the Democrats, as he runs left of center and would presumably pull votes away from which ever crazy leftist the Democrat nominate. But Howard Schultz has nailed one thing. This appears to be his signature issue and he is absolutely right about it.
Schultz is going after the national debt.
For months, Schultz has been saying the biggest threat to America is the national debt. He is absolutely right. When Barack Obama took office in 2009, the national debt stood at $10.6 trillion. Today it is over $21 trillion.
The debt was the impetus for the creation of the Tea Party movement, that decried massive government spending. Republicans gave lip service to this and kept right on spending, just like the Democrats.
During the Obama years, the impact of the national debt was mitigated by the Federal Reserve, which kept interest rates at unnaturally low levels. This not only postponed damage from the debt but helped keep the economy from imploding under the disastrous policies of Obama.
Since President Trump took office, the Fed has raised interest rates six times. Now, the interest in the debt is rapidly rising and will soon be a larger part of the federal budget than the Defense Department.
In addition to the national debt, America has an untold amount in unfunded liabilities. These are liabilities the government may be called upon to fund. The unfunded liabilities for Medicare alone are $37 trillion and the total for the United States could be as much as $200 trillion.
Schultz is right. The national debt is the paramount threat to America.
How would Schultz address the debt? My guess is he would want a lot of tax increases and some spending cuts. He is left of center so that is probably how he thinks. The problem is Washington never wants to cut spending. In 1981, when President Reagan pushed through his historic tax cuts, part of the agreement was there were to be spending cuts as well. Congress loved cutting taxes and telling people they cut taxes, but they were totally unwilling to cut spending.
And that trend continues.
Howard Schultz is not the right candidate to be President. But I’m glad he is at least thinking about running and I hope he does. I hope he continues to put the spotlight on the national debt.
The debt is out of control and America needs to do something about the debt, assuming it is not already too late.