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  • Guest Blogger: Saving Our Nation From Debt

    Uncle Sam is spending you into the poorhouse. Taxes, inflation, unemployment, interest rates – all could skyrocket if Washington keeps spending trillions of dollars it doesn’t have. Unless we begin to cut spending now (a lot of spending) these four horsemen of debt will ride roughshod over families and businesses already struggling to get by. Fortunately, we still have a chance to kick the spending addiction and keep the American Dream alive.

    What Can’t Go on Forever, Won’t
    Between 2007 and today, total federal spending rose by almost 36%. Meanwhile, taxpayers’ personal budgets have headed in the opposite direction. From 2007 to 2009 (the latest data available), median family income actually fell by 4.2%.

    As a result, the federal deficit will top $1.6 trillion this year – fueling the increasingly rapid rise of our $14 trillion national debt. It should be obvious to all that today’s reckless spending cannot go on forever. But under the budget recently proposed by President Obama, the federal government never comes close to living within its means. In ten years, his plan sees the national debt almost doubling to $26 trillion. If the President’s economic predictions prove too rosy (as his stimulus predictions certainly did), the problem gets even worse.

    Picture a family that earns $50,000 while spending $80,000 – every single year. Eventually, this family’s budget will get smaller. Just like Uncle Sam, the only question is whether they cut back now and on their own terms, or later, with far worse options and much more pain. People know it will take tough love to get the federal budget into balance. What they don’t yet know is whether their elected leaders will have the courage to deliver.

    The Road Ahead
    If Senate Democrats accept Americans’ call for lower spending, Congress will soon avoid a government shutdown and agree on funding levels for the last 7 months of this budget year. But bigger battles await. Sometime in the next few months, Washington will hit its legal limit for borrowing. And before October 1, 2011, Congress must write a budget for next year. Our response to these challenges will determine whether Uncle Sam devours our economy with debt or helps it grow by slimming down and getting out of the way.

    The coming budget and debt ceiling debates represent the last real chance to cut spending and keep our economy competitive for the 21st Century. A starting point for discussion should be the Republican Study Committee’s plan to cut nearly $2.5 trillion of “discretionary spending” (the part of the budget that funds federal agencies) over the next ten years. Still, our Spending Reduction Act is just a head start in the race to save the economy from crippling debt. To get to the finish line, we’ll have to go farther.

    The big budget challenges are in so-called “mandatory spending” or entitlement spending (which accounts for nearly 60% of the budget). Medicare, Medicaid, and Social Security were all created as a safety net for the most vulnerable in our society. Over the decades, however, expanded eligibility and benefits and longer life expectancy have stretched this net to its breaking point. Sadly, President Obama’s budget is completely silent on how to save these programs from their current path to bankruptcy. If the country does not act soon to reform and preserve this safety net, the people who need it most will suffer the consequences.

    The Courage of Our Convictions
    A few weeks ago, the House Appropriations Committee unveiled legislation to reduce spending for the remainder of the 2011 budget year. While we appreciated their good work, members of the Republican Study Committee also knew that more needed to be done. We sent the bill back to the drawing board, and as a result the House recently voted to cut total spending by more than $61 billion this year, or $100 billion below the President’s request. Now it goes to the Senate.

    Although last week’s vote to cut spending was only the first step of many, it should have been a bigger step. To keep this country a land of opportunity and innovation, Representatives, Senators, and the President himself will need to work together make the large spending cuts necessary to get the budget on a path to balance. Nearly every politician talks about the dangers of unchecked deficits and debt. In 2011, Americans will learn who has the courage of their convictions.

    As we see today in Wisconsin, the Left will fight vigorously to kick the can down the road one more time. At this moment, however, we stand at a fork in the road. Down one path wait higher taxes, rising inflation, painful interest rates, and fewer jobs. Down the other, the chance for individuals, families, and businesses to build a healthier, more prosperous future.

    No choice could be easier to make.

    Posted in Economics [slideshow_deploy]

    9 Responses to Guest Blogger: Saving Our Nation From Debt

    1. Bobbie says:

      Rep, Jordan, you are absolutely right!

      Tax payers are not accountable to the governmental wastes and are not accountable to democrat and the president's lack of control, blindly stealing for government incompetency. Discipline and accountability lack to an unsustainable level in the democrat party with the President leading. Tough love in government should act before it's put on the people government and their unions have been corrupting.

    2. Anthony, Las Vegas says:

      I've been in debt before, and I can tell you that you're only half right.

      Let's say I'm in debt. According to what you're saying, I should cut things from my budget like cable TV, unnecessary subscriptions, junk food, DVDs, video games, etc.. This is the correct thing to do as far as budget cuts. So let's say that I cut my budget as recommended. Is this enough? No, it is not enough. I can be more responsible by taking up another job to make more money.

      If I cut my budget AND increase my income, then getting out of debt will go by much faster. Therefore, budget cuts are only half the solution. The other half of the solution would be to hike up taxes to generate more revenue.

      Another solution to the debt problem would be to call Bill Clinton and ask him how he generated a Federal Surplus even though his predecessor, George H.W. Bush, had generated a Federal deficit which was also very high.

    3. George Colgrove, VA says:

      Rep. Jim Jordan,

      These are nice words to hear – but they are just words. There is little hope any action will be coming from you and you cohorts in congress. The federal government uses the most expensive workforce to do excessively simple jobs that require little if any talent. The DoD builds an extravagant administrative building in the middle of a congested residential area at a cost of about $530 per square foot (or at a cost of over 140,000 per employee that will work there) when typical office space construction typically hovers around $150 per square foot – tops! This building joins the extravagant FHWA (DOT) buildings at the Naval Yard, the Commission of Peace building and so many more useless but excessively fancy building s that went up when America was hurting. All so this coddled workforce can work in luxury.

      This government waste money! When you ask any fed, they will admit that anywhere between 20% to 50% of their office, co-workers could be booted today, and no one would notice. We are going into debt by another $1.6 trillion this year. That is about $51,000 per second. The average household income outside the beltway is about $51,000! We are blowing through 1 household income per second. There are over 31.5 million seconds in a year and we wonder why there are over 10 million people out of work!

      This year we will start being charges over $500 billion in interest. That was the DoD budget about 5 years ago! We are only paying $160 to $230 billion each year. We are hemorrhaging money. Soon we will be at a point where we will not be able to pay back this debt. Your $100 billion in tiny cuts will not solve the problem – we need to cut $1.6 billion! I see that you feds want to raise taxes by over a trillion dollars by the end of 2016. I also see you feds want a federal budget of over $4 trillion! We cannot afford it! We cannot afford continuing to fun the most expensive and least effective workforce on the planet! We can no longer afford to build elaborate edifices for federal office space.

      There is no need to have over 2.7 million federal employees; there is no need for over 700,000 federal employees in the DoD. There is no need to pay federal employees twice what the private sector earns. There is no reason why feds get better benefits than employees are in the private sector. We do not have the money! Where is the proof? A $14.2 trillion debt! Since 9/11 we have more than doubled our deficit for what? The world is far more dangerous! Moreover, we are at a point where this world is crumbling around us, and we do not have the resources to stop it. You in the federal government have worked side by side with Al Qaeda in bankrupting this nation. You have not done anything but impoverish this nation for decades – if we decide to pay back the debt today.

      If you want to talk about cuts – do so. But do it on your own time. While you get a paycheck from the people, you had better BE cutting. I am done with discussing cutting the budget. Just get it done. We need to cut $1.6 trillion from the annual budget. It looks like rather than do everything, we need to prioritize how to spend $1.8 trillion. We need to pay the FULL interest on the debt. We need to pay the principal down. I strongly recommend we start with cutting the government by 15% this year and 15% next year – across the board. This should include SS, MC/MC and defense as well as the non-defense discretionary spending. We need to cut EVERYTHING!

    4. George Colgrove, VA says:

      Anthony, Las Vegas ,

      "If I cut my budget AND increase my income, then getting out of debt will go by much faster. Therefore, budget cuts are only half the solution. The other half of the solution would be to hike up taxes to generate more revenue."

      Problem with your solution is this: You say you go out and "earn" more money from getting "another job." The person you work for gets an equal share of the value of your time – for their business – in exchange of the money they give you.

      "Hiking" taxes is not the same. The overpaid self-serving feds TAKE our money for nothing in return. As a result the economy takes a hit. Using your analogy more accurately , you would have to go to your neighbor and simply TAKE their money to pay off your debt.

      The feds never have to work for the extra cash. The government only has to say they increase the tax rate and boom! there it is. They did nothing of any value to grab that cash. The taxpayer got nothing for it.

      The second problem with your obfuscation is that we the people are broke – there is no more money! The only place to fix this is to cut government – and do it in a big way. We are passed the scalpel, we are passed the meat cleaver, we are passed the ax, we are passed the chainsaw. We need to use a bucket-loader and start scooping the waste and the spending and do some significant reductions to the federal govenrment. 2011 – we are 36% over spent. Obama admitted his budget is 43% overspent. What is it about this you feds and leftist do not understand?

    5. George Colgrove, VA says:

      Rep. Jim Jordan,

      Just one more thing – some sobering tax facts:

      After the attacks on 9/11 the hit on the economy cost the federal government $66 billion in reduced personal income tax collections.

      To revive the economy, congress passed the proposed Bush Tax cuts, which further reduced income tax collection by $139 billion in 2002. In 2003, tax revenues bottomed out. 2004 and after without changing the tax code, tax revenue rose by $72 billion, $207 billion in 2005 and then in 2006 revenue went up again by $192 billion.

      The democrats took over congress in 2007 and then start to monkey around with the community reinvestment act. Housing market collapsed and 9 million people lost their jobs. Though in 2007 we coasted with another gain in $135 billion increase in income tax revenue (a sign of a growing economy), in 2008 we drop by $84 billion and in 2009 we fall further by $397 billion (a sign of a failing economy). This happened with no changes in the tax code. Since then we have plateaued at 1999 level tax revenue. In two years the democrats policies cost the federal government just short of $500 billion – almost all the gains the Bush Tax cuts brought the federal government.

      Now here is what you in the federal government have in store for us. Though the GDP has seen little gain since 2007 (only $1.1 trillion or a measly gain of $220 billion a year. That is almost half the growth rate we had in the prior five years. This year you in the federal government are projecting that the GDP will go up to $5.1 trillion – an increase of $500 billion. You are then projecting that the US GDP will climb a magical $880 billion per year to $19.8 trillion by 2016.

      Using this highly optimistic figuring with the GDP, You feds are proposing massive increases to federal spending (a budget over $4 trillion!) and cumulative tax hikes of $315 billion in 2012; another $280 billion in 2013; another $199 billion in 2014; another 155 billion in 2015 and finally a $150 billion in 2016. In total, the federal government will be taking an additional $1.1 trillion from the American people or nearly $10,000 more from each of the current taxpayers – average – on top of what we are paying today! In 5 short years the overpaid ineffective federal workforce will be forcing us, the taxpayer to DOUBLE what we are paying today so you can get your luxurious pay and benefits and to allow you to have your excessive privileges on OUR BACKS!

      If you can believe that we can have $880 billion annual growth in the GDP each year while Americans are losing incomes and are being taxed twice than we were in 2010; with government workers robbing the taxpayer with excessive pay and benefits; with unemployment at depression levels; with defense spending nearing WWII levels; with 1 in six Americans defined as poor (highest level – ever!); with over half of the populations on some sort of government payout (be it government employees or welfare recipients); with over $200 trillion in looming unfunded pensions and other government benefits and with a national debt of over $15 trillion then you are either as corrupt as the federal workforce is or you are truly gullible and you are who the feds count on to vote.

      My observations show that you feds lie, you obfuscate, you mislead, all the while you personally gain from it all. We the people need to stop this crime against the American people. You in the federal government have not been working for us for a long time – that is becoming obvious. What is also becoming very clear is that you are working hard for your personal gain in wealth and privilege.

      Just one piece of evident that supports this statement. With all the unionized public workers protests against the American people in this country, where are the other public employees forming groups that support the American wishes? What federal employee is coming out to say we support the American people and demand fair pay and a fair set of benefits with the rest of the populations? What federal employee is cutting their own office budget? What federal employee is resisting the urge to foolishly spend their office’s unspent money at the end of year? There are not any. They will continue to fight for the right to take every dollar they can from us for their pleasure.

      If you do not consider yourself a part of all of this, I challenge you to refuse your pay and benefits – ar at lease take what is fair to your constituents recieve!

    6. Kevin H, college par says:

      Congressmen, your policies will wreck our economy – as expert economists across the board have predicted – it will cost jobs and hurt economic growth (reducing GDP by as many as 2 points). Your policy positions on spending cuts are so extreme, 92 of your colleague voted agaisnt your amendment for even deeper cuts.

      The left will fight vigourously to kick the can down the road? When your side was in power for 6 years last decade, what did you do to address health insurance reform or budget deficits and debts? Absolutely nothing – all you did was make things worse in every facet. The left are the ones who make the tough choices to take on the issues no one wants to (and we saw in November the consequences of making tough choices). Now, all you want to do is cut taxes – extend all tax relief – and cut spending – which is a recipe for another GOP created economic disaster.

    7. Ed, Reno Nevada says:

      I think Mr. Colgrove speaks for the majority of Americans. It's pretty obvious what needs to be done.

    8. Leon Lundquist, Dura says:

      Jim Jordan, thanks for the Guest Blog. Unfortunately what Republicans never seem to understand is that our so called 'loyal' opposition is not at all interested in Representative Government. These Demolition Plutocrats have absolutely no intention whatsoever of actually doing the right thing! These DINOs are Representing the Foreign Interest! That is the truth of what they are doing, not showing up in the Wisconsin Senate and not Prosecuting the Law. Don't you get it Jim? They are Progressive Socialists! They don't believe in the American Representative Democracy! You cannot bargain with them, they never bargain in good faith!

      You are in the House! Impeach them for their High Crimes! That is the only way to stop these fake Democrats! Cut off their funding! But do it for the right reasons! These guys are disloyal Americans bent on destroying the best nation in the History of the World! They will wait you out! They will use the Administration to Dictate to Americans! Dictatorship! I am dead serious about Defunding them and Shutting Down the Government. It has already gone too far. There isn't any runway left! The American way of life depends on you guys! You want to compromise with these creeps? They stole their elections with lies! They are Socialists, Communists and profoundly Disloyal! Stop them or Americans will die! Stop Unconstitutional Forms of Government in America or crash!

      And look! Democrats want to crash! They vote nothing else but America's crash!

    9. Bobbie says:

      Kevin, you are confused and misguided. The reason this country is where it's at is because of deception and irrational rules and regulations at a cost beyond the knowledge of those paying putting all consequences unfairly on those paying. All directed by the left. Now either accept the truth or continue embarrassing yourself with your attempts to convince people of your falsities. The only way these policies would "wreck" the economy is if people like you, go to great lengths to cause it to happen.

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