At a hearing in March I asked Secretary Tim Geithner whether the US was at risk for losing our AAA credit rating, as a Moody’s quarterly report had indicated. He point blank responded that there is “not a chance” that this would happen to our country. I wish I could share his confidence, but given how things have unraveled in the past few months, I believe that America needs to take a step back and seriously reevaluate the way the government does business these days.
While the Administration pushed through a failed stimulus bill, continued the mantra of “too big to fail” and lobbied for bailout after bailout for private companies, something was happening to our friends in Greece. All the spending, entitlement programs, and massive debt began to catch up with that government and would soon spur panic across the globe.
In April, one month after I questioned Secretary Geithner, Moody’s downgraded Greece’s credit rating because of its deficit, debt, and lavish spending. Sound familiar?
That’s because the United States is eerily marching down the same path as Greece. That path is marked with reckless spending, soaring debt and historically high deficits.
In April 2010, Greece’s FY 2009 deficit was estimated at 13.6% of the GDP. The United States FY 2009 deficit reached a record high of $1.4 trillion, or 9.9% of the GDP. If we continue to follow the President’s proposed budget, over the next ten years our average deficit will surpass the number that brought Greece to its knees.
Then there is the lingering issue of the debt. Greece’s debt reached 115% of the GDP and could reach 150% of the GDP before too long. Interestingly enough, the CBO reports that the US debt will jump dramatically from 53% to 63% between FY 2009 and FY 2010. And, just yesterday the Treasury Department estimated that by 2015 the ratio of US debt to GDP would rise 102% to nearly $20 trillion.
I wonder if Secretary Geithner would make such a bold statement about the US credit ratings today?
One thing remains clear — the United States has a spending problem. Rather than reign in spending during tough economic times the liberals in Congress have pushed through a massive health care bill that sinks us further into debt, allows the government to control over 1/6 of our nation’s economy and does nothing to lower health care costs. Meanwhile, Americans are still unemployed, they are still hurting, and they are forced to watch their government pass down a burdensome debt to their children and grandchildren.
You would think our nation would learn from Greece’s example. Unfortunately, the Administration did what it always does when it faces an uncomfortable economic uncertainty- it approved a taxpayer funded bailout for Greece. That’s right, you and I are footing $6.8 billion of Greece’s bailout through the IMF.
It is no surprise that in a recent Gallup poll 79% of Americans view the federal debt as a very serious threat to the future well being of the country. If hardworking taxpayers can understand the implications of our government’s reckless fiscal policies, why can’t President Obama, Senator Reid or Speaker Pelosi?
Enough is enough. The time to waste opportunities to reign in spending is over. Congress needs to pass a budget that reflects what each and every American family is doing back home- cutting back on spending and reprioritizing for the years ahead. Sticking our heads in the sand will only further our economic challenges and encumber the success of our future generations.
Congressman Hal Rogers represents Kentucky’s 5th Congressional District and currently serves as the Ranking Member on the Homeland Security Appropriations Subcommittee.
The views expressed by guest bloggers on the Foundry do not necessarily reflect the views of the Heritage Foundation.
Rep. Rogers – I presume since you are so terrible concerned about debt and deficits, you will be pushing to allow the 2001 and 2003 tax cuts for the wealthiest Americans expire…and that you will be pushing for a lower exemption level and higher rate for the estate tax.
Espcially considering under the Clinton years, with the 1993 Omnibus Budget, that you and every other republcian voted against, the Democrats were able to have 4 straight years of surplus for the only time you have been in Congress..and job growth was greatest in the 30 years you have been in Congress.
You have seen over the 30 years what works – and it certianly is not what you and your Republcian colleagues have done – From 2001-2008 you took the biggest projected surplus and turned it into the biggest projected deficit in history.
Obviously, the Democrats have show far better expertise in hadling job growth and the economy.
You can use accusations and make wild claims, but you can't get away from the facts.
Talk about a Congressman who's out of touch and needs to be run out of office – Rep. Rogers only cares about making purely politcal statements that are based on fantasy. The 'failed stimulus'?!?! What a joke. 15 terms? Yeah, i'd say it's time for you to leave.
Home buying jumped during the very period when a tax credit for home buying was in effect. The same happened with corporate investment. State spending stabilized in the middle of last year — just as states were hearing about their stimulus awards — even though state revenues were continuing to fall at the time. Consumer spending has risen faster than income growth would suggest, but about as fast as you’d expect given the combination of income growth and stimulus tax cuts.
More broadly, job cuts began shrinking just as the stimulus was going into effect last year, and the stock market began rising shortly after it passed. The stimulus was by no means the only reason, but it appears to have been a significant one.
Based on its economic models, the Congressional Budget Office recently estimated that between 1.4 million and 3.4 million workers who have now jobs would be unemployed if the stimulus hadn’t been enacted. Three of the best-known private economic research firms — IHS Global Insight, Macroeconomic Advisers and Moody’s Economy.com — have come up with similar estimates. The average estimated effect on employment is about 2.5 million jobs.
Nariman Behravesh, IHS Global Insight’s chief economist, has a nice way of summarizing what the bill did (and, to some extent, didn’t) do: “It prevented things from getting much worse than they otherwise would have been. I think everyone would have to acknowledge that’s a good thing.”
My recommendation is to eliminate retirement benefits for all of the political offices for and during each year the total (on the books and off the books) federal budget is out of balance. Watch how quickly spending comes back into line. Let us make those that spend the money accountable for these mistakes.
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Any time any member of this administration says "there's not a chance that'll happen" is greater chance they'll make it happen. They are the ones in control and with authority.
Yeah, that senator rogers, wow, a man truly looking out for the good of America and the good of her people. Wow! A man of decency in the government. huh. Imagine that. May God Bless and keep him safe. May his words inspire others to know what it takes and means to live free.
It's too bad some can't recognize the present without bringing up the past and pursuing an immature rebellion of punishing the present population of innocent people throughout, while totally ignorant of the future.
Deficits are caused by poor government leadership. Recession was brought on by poor government leadership. Geithner says " we need political will to restore the economy." ???? No Mr. Geithner, FREE WILL OF THE PEOPLE, will restore the economy, without government overreach.
Geithner says, paraphrasing: "it is completely within our capacity to resolve our debts." I believe that is true in every mind set of this imagination. Basic logic conflicts with this ignorance. Especially over-staffing, spending, wasting creating ignorant government, brainless jobs…
Every deficit, every debt, every bankruptcy, is all failed GOVERNMENT LEADERSHIP! Nothing this administration is doing speaks of the people doing for themselves. They insist on their perception of a weak people, to be reality when it isn’t and doesn’t have to be with proper American leadership, but this leadership influences it to become.
Government does not have to fix the boo boos the freedom of choice mankind puts on their individual selves. Those who don’t want to take care of themselves can give their money to government for benefits they think they benefit from. Right Kevin? The more the president builds more government, the weaker he is.
I learned today that my unemployment has ran out and I cannot find a job. I have been going to college, Now I have to quit college and look for some kind of job. I cannot believe that they did not past the unemployment bill. So many people cannot live without this money. I am very sorry that I have to quit college because of this.
I really like your posts and the way you express your opinion. I will add you to my favorites in order to read more on this topic.
Your opninion on this topic is great, and I think that few will try to dispute it. To repeat what others have said, requires education, to challenge it, requires brains.