Debt Disaster Denialists Think America Has a New Magic Bullet

by Mitch Daniels, The Washington Post, May 12, 2026 - For years, I kept a favorite cartoon in my desk and pulled it out to open the annual business-plan meeting at the unit I led. It showed a frazzled executive standing in front of a screen displaying his multiyear sales projections. The line ran straight horizontally, close and parallel to the x-axis, almost to the right edge, where it leaped steeply upward, next to a label that said, “Miracle happens here!”

No impulse is more human than wishfulness, the tendency to grasp at any straw that enables us to avert our eyes from difficult realities and put off facing them. Members of America’s national political class personify this failing, in their continuing practice of fiscal denialism. Even as the inexorable arithmetic piles up, those responsible for the nation’s economic future and national security fasten on imaginary miracles to justify a gross default of their duty of stewardship.

A decade ago, as the national debt surged toward the once unthinkable level of $20 trillion (now nearing $40 trillion), denialists took brief refuge in an alchemist fantasy that called itself Modern Monetary Theory. The notion that a nation could borrow without limit, forever, in its own fiat currency was quickly demolished by full-spectrum critiques, in venues ranging from the Cato Institute to the Review of Keynesian Economics. ... 

In our post-truth world, facts aren’t as stubborn as they used to be, but the most obstinate of all are the mathematical ones. They tell us not to rely on even the powerfully positive impact of these new technologies to spare us the radical adjustments that a generation of procrastination has now made inevitable.

... What’s not credible is the idea that even an AI-led productivity surge can suffice to offset our decades of dereliction. ... This is no time to be touting miracle cures to justify further procrastination. Until America acts to make major changes in laws on the books, the right side of our national business-plan chart will continue to show a sharp downward line and the label, “Big trouble happens here.” (read it all)

Mitch Daniels is a senior adviser to the Liberty Fund, president emeritus of Purdue University, a co-chair of the Committee for a Responsible Federal Budget and a former governor of Indiana.

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