Out of Control Spending

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Not since World War II have federal deficits grown at such a rapid pace. Under the President’s proposed budget this year, annual budget deficits are averaging just under $1 trillion for the next decade. That level of spending is simply not sustainable for our country.

While the deficits forecasted are foreboding, even more alarming is the continued growth of our national debt if this spending continues. Currently our national debt is $13 trillion, which is a staggering number. However, our national debt will almost double and reach $25.8 trillion by 2020 under the projected spending levels of the Administration.

Why Our Debt Matters

Just look to several of the European countries in the news lately to see why such high levels of permanent spending and debt are a recipe for collapse. Concerns over Greece’s debts have led to an effective boycott of Greek debt on the world markets, according to the BBC, which endangers the entire Greek economy.

The ultimate cause of this Greek crisis is the country's woeful amount of debt, which has reached 115 percent of GDP.  The U.S. is not far behind Greece and we will soon reach similar heights of debt unless we cut spending.

By 2020, public debt in the U.S. will be 90 percent of GDP and will continue its upward trajectory.  Traditionally, a debt-to-GDP ratio of 90 percent or more is associated with the risk of a sovereign debt crisis, according to former CBO Director Douglas Holtz-Eakin.

Greece’s deficit and debt crisis is a direct result of the country's choice to continue their unsustainable spending year after year. Unless we cut back the proposed spending by the Administration and enact some common sense spending cuts, the U.S. will be continuing down the same path as Greece.


What Can We Do to Fix It?

Washington needs to bring spending under control and enact commonsense balanced budgets. I support the Balanced Budget Amendment, H. J. Res. 1, which would enact a constitutional amendment requiring that Congress balance the books. I think commonsense and immediate steps like these are needed if we are to truly get our financial house in order.

In addition to the Balanced Budget Amendment, I support all efforts to cut wasteful or unnecessary programs and reform every department in the government to make them more efficient. We simply cannot have all parts of our government growing in perpetuity with no checks on the spending levels. We also cannot continue using taxpayer dollars to bailout companies and banks that make poor business decisions. The idea of “too big to fail” is a flawed one that must not be allowed to become standard policy.

I will continue to work with my colleagues to pass legislation that controls spending, lowers the deficit, and restores market discipline. What do you think about our current spending levels? Vote now in my poll.

Please see the resources below for more in-depth information on spending in Washington.

Heritage Foundation - Federal Spending by the Numbers 2010
House Republican Conference  - The US follows Greece
House Republican Conference  - Bailouts Go International      
Douglas Holtz-Eakin - Testimony on the Budget

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