Guaranteeing affordable, reliable energy would help tackle our $40 trillion debt
August 31, 2026
Headlines last month blared the news that the national debt had surpassed the $40 trillion
mark, with stories recounting the history of our government routinely spending more than it takes in, and the ensuing accumulation of debt over the course of several decades.
The media typically chooses milestone numbers to focus attention on something even when it’s
an ongoing issue. To be sure, there wasn’t much difference in the big scheme of things regarding the
ramifications of $39.9 trillion in debt compared to $40 trillion. But, knowing well in advance that the big, round number was approaching, the media had their stories queued up – and still often managed to miss the mark.
Some of the articles engaged in versions of the blame game. Many on the right pointed fingers
at the growth of entitlement programs. The left often blamed national security and military spending. Whichever side one chooses, the fact remains that increased spending without corresponding cuts – or without additional revenue – makes the math pretty simple.
Without agreement on how to address our national spending problem and stick to sound
budgeting practices, one economic solution should be easy to embrace – removing uncertainty from
energy costs, the top driver of business and family budgets. Acting to protect energy costs would go a long way toward helping to address out-of-control spending across the board.
Legislation has already been drafted to codify dependable, cost-effective energy – the
Affordable, Reliable, Clean Energy Security Act (ARC-ES). Versions of the legislation have been adopted or are on track to be enacted in several states. The federal version of the act was introduced in Congress late last year by Rep. Troy Balderson (R-OH).
Among other things, the legislation guarantees that nuclear and pipeline quality gas will always
be included among an “all-of-the-above” energy strategy. Anything less would stifle the goals of
ensuring affordable, reliable and abundant energy.
Energy affordability impacts virtually every other part of the economy. A booming economy
generates additional revenue – which can shrink the debt – without implementing tax hikes. And
nothing leads to a robust economy like affordable and reliable energy, which impacts everything from manufacturing to agriculture to the data centers that are rapidly popping up from coast to coast.
In remarks earlier this year, Federal Reserve Vice Chair Philip Jefferson made clear why
controlling energy costs is so important to the economy in general.
“The effects on the economy will greatly depend on how long energy prices remain elevated,” Jefferson explained, adding, “The longer energy prices remain elevated, the more households will need to confront tradeoffs. Families who depend on petroleum products to commute to jobs and school and to heat their homes may need to pull back on more discretionary forms of spending. That could potentially result in lower spending at restaurants or retailers. It could also result in households carrying elevated levels of debt.”
Jefferson noted that energy products “directly represent about 7 percent of total consumer
spending, but energy costs are also spread through the economy, including in transportation,
manufacturing, and food production. An extended bout of elevated energy prices could put upward
price pressure on a variety of other products.”
How does that impact the national debt? We live in a world where the U.S. government feels
compelled – and is expected by many Americans – to fill the gaps when the free-market stumbles. The covid pandemic offered an extreme example, with the government spending about $5 trillion on “stimulus checks,” increased jobless benefits, expansion of the Child Tax Credit, business bailouts, state and local aid, enhanced healthcare spending and other items.
But more routine occurrences, including periodic inflationary pressures, also often result in the
government borrowing more to spend more. That’s why it’s crucial to do everything in our power to put less financial strain on businesses and families and discourage the government from finding reasons to step in with more spending.
Nothing is more important in that regard than energy. Affordable and reliable energy helps fight
inflation by controlling overall costs and makes government subsidies – in support of “alternatives” for instance – more difficult to defend. If energy is already cost-effective, reliable and abundant, there is no reason to devote trillions in subsidies and credits to prop up the “renewables” sector, as the Biden administration did according to some estimates with its misnamed Inflation Reduction Act.
With a national debt topping $40 trillion (and growing), and a Congress largely unwilling to make
the tough choices necessary to reverse the trend, there is at least one answer at our fingertips to fight
runaway costs. ARC-ES is not just an energy policy – it’s a crucial tool to fight debt and inflation and begin to reduce our runaway deficit.
Gary Abernathy is a longtime newspaper editor, reporter and columnist. He was a contributing
columnist for the Washington Post from 2017-2023 and a frequent guest analyst across numerous media platforms. He is a contributing opinion columnist for The Empowerment Alliance, which advocates for realistic approaches to energy consumption and environmental conservation.