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  • VIDEO: Rep. Paul Ryan Addresses the Debt Crisis

    In a speech at the Economic Club of Chicago yesterday, Rep. Paul Ryan (R-WI) laid out his “Path to Prosperity” 2012 budget proposal. Ryan also discussed how the U.S. government reached its big-spending tipping point:

    By the end of the decade, we will be spending 20 percent of our tax revenue simply paying interest on the debt – and that’s according to optimistic projections. If ratings agencies such as S&P move from downgrading our outlook to downgrading our credit, then interest rates will rise even higher, and debt service will cost trillions more.

    This course is not sustainable. That isn’t an opinion; it’s a mathematical certainty. If we continue down our current path, we are walking right into the most preventable crisis in our nation’s history.

    The first step of Ryan’s plan is the simplest:

    First, we have to stop spending money we don’t have, and ultimately that means getting health care costs under control.

    His plan is a stark contrast to President Obama’s budget proposal, which calls for more spending of money that America doesn’t have.

    Ryan’s plan just does not balance the budget, it pays off the debt. The “Path to Prosperity” reduces the deficit by a third in the first year, putting an end to trillion dollar deficits.

    In his speech, Ryan stressed the importance of controlling entitlement costs like Social Security and Medicare, saying that Medicare was the engine driving up costs. The Ryan “Path to Prosperity” plan offers a real solution to the debt crisis, something the administration is not offering.

    Heritage has also offered a budget solution titled “Saving the American Dream.” Both plans would be a welcome change to America’s current path.

    Posted in Economics [slideshow_deploy]

    10 Responses to VIDEO: Rep. Paul Ryan Addresses the Debt Crisis

    1. chris says:

      Paul Ryan for president 2012!! This guy is the rock star of republican party and a sure win against Obama.

    2. George Colgrove, VA says:

      Reckless Federal Spending May 2011 Update.

      April 2011 Spending:

      •April deficit spending was 50% from 2010 – budget pressures are starting to show with congress being reluctant to raise the debt ceiling.

      •Spending for the last three months have been over $330 billion per month.

      •The federal government is now on a budget. Projected FY11 spending based on current spending levels is $3.74 trillion – just $90 billion shy of the published FY11 budget.

      •The public is rejecting the idea of raising the debt ceiling by more than a two to one ratio (57% oppose to 19% in favor).

      •At the close of business in March, the available credit was $76.14 Billion. After two months of deficit spending nearly or over $200 billion, the federal workforce was forced to significantly reduce deficit spending (lowest this year so far and second lowest since the beginning if FY10), though a $44 billion montly uptick in tax revenue over last year helped a little. What this month proved is that once a limit is set and held, the federal workforce will slow down deficit spending. For May, there was only $6 billion left to our credit, which on Thursday May 12th the federal workforce pushed us over. Hopefully we will see the added deficit for May be even lower.

      Since April, the US outlook has been shifted to negative. We learned that over 20% of homes are underwater. Independent investment firms are saying US debt should be classified as ‘C’ grade – just two steps above junk. China has been dumping its US holding by 5% each month.

      From the recently released US Treasury “Monthly Treasury Statement” – April, 2011 and from the “Daily Treasury Statement” – April 29, 2011 and the interest summary at here is the following debt update:

      Receipts are up over last year by $110 billion ($967.00 per taxpayer), and based on the rate the feds have collected so far, receipts may be higher than last year by $83 billion (+4%).

      FY11 Spending to date has increased by $181 billion from last year with annual spending now projected to be $281 billion higher than last year – so far ($3.736 trillion or $94 billion below the FY11 proposed budget.

      The annual debt thus far has gone up by $870 billion in spending and $244 billion in interest (seven months). At this rate, the annual debt increase for the year will likely be $1.73 trillion. So far this year 40% of the federal budget is covered by debt. Last year the overall debt percentage was 37%.

      If one were to take the dedicated tax revenue (roughly 36% of receipts – or $808.11 billion) that goes to social security and Medicaid/Medicare and take that out of both mandatory spending and the total budget, the remaining budget ($2.928 trillion) is being funded by 57% debt ($1.659 trillion). These numbers are based on current spending.

      At 40% debt spending and ignoring the interest expense, the figurative date the federal government runs out of real money during FY11 (Oct. – Sept.) was in April. Meaning from here on, all paychecks, entitlement checks, contract payments and all other expenditures from the federal government are adding to the national debt.

      An example on how fast we are going into debt:

      As of 05-17-2011, we are going into debt by $1.73 Trillion this fiscal year FY11. This is at a rate of $144.31 Billion per month; $33.30 Billion per week; $4.76 Billion per day and $198.23 Million per hour. Every minute we are going into debt by $3.30 Million, and every second we are blowing through what a typical household that is doing comfortably, earns in a year – $55,063.98.

      A four hour congressional hearing to discuss federal budget cuts puts America $792.92 Million deeper in debt, with nothing to see out of it.

      FY 2011 [Monthly Debt spending - millions]

      •October [140,432] – (lower by $35,931 from FY10)

      •November [150,394] – (more by $30,107 from FY10)

      •December [78,134] – (lower by $13,276 from FY10)

      •January [49,796] – (more by $7,162 from FY10)

      •February [222,500] – (more by $1,591 from FY10)

      •March [188,153] – (more by $122,766 from FY10)

      •April [40,487] – (less by $42,203 from FY10)

      FY 2011 [Monthly Interest on Debt – millions]

      •October [24,142]

      •November [19,396]

      •December [104,700]

      •January [21,123]

      •February [21,759]

      •March [24,460]

      •April [28,895]

      Total interest charged in FY11 is $244,476 Billion – paid only $104.19 billion.

      Some facts:

      •Projected FY 2011 interest expense will be $419.10 Billion – budgeted to pay only $188.78 Billion.

      •Current debt at the close of April 2011 is $14.288 Trillion ($125,330.09 per taxpayer)

      •The Statutory Debt Limit is $14.294 Trillion (Set on Feb 12, 2010 by the 111 congress)

      •Available Credit is $6.37 Billion (by end of April 2011).

      •Average monthly debt spending thus far = $144.31 billion. Average interest charge is $34.93 billion.

      •By the end of May 2011, the debt will likely be $14.412 trillion at that rate, taking us over the debt limit by $117.9 billion of available debt.

      By the end of September (close of FY11), the debt will likely be $15.25 trillion (with added interest not paid). This is $0.955 trillion over the debt limit and represents $133,769 per active taxpayer (the only people who have “skin in the game”).

      Current actions that reduce spending (does not include intent, planned reductions or pending legislation):

      •Obama: Freeze federal employee pay – countered by federal employees giving themselves merit bonuses, merit step increases and in seat promotions.

      •In the 4/4/11 CR there were cuts totaling $4 billion in mostly onetime items. The annual budget has yet to be cut significantly.

      •In the 4/18/11 CR there were cuts totaling $6 billion in mostly onetime items. The annual budget has yet to be cut significantly.

      •A third CR was passed without any cuts however; it came with an agreement to pass a remaining budget for the rest of the year with $38.4 billion in cuts – which included the two cuts listed above. Further analysis showed that the final cuts after increases save the taxpayer only a few hundred million dollars.

      There is absolutely no way we are getting out of this year without increasing the debt limit. Spending up to today has exceeded collected and expected revenue combined. We can still cut, but at this point is will only lessen the sting.

      •Remaining expected revenue is $0.935 trillion out of a projected $2.244 trillion.

      •Remaining expected spending is $1.557 trillion out of a projected $3.74 trillion.

      •Interest that will be added to the debt since we are paying only a projected $179 billion in FY11 will be $241 billion.

      We need to cut $863 Billion (1.557T – 0.935T + 0.241T) right now to stop the increase of our current National debt. This represents an across the board cut of 55% of the federal government.

      Where is some of that money going? Here are some big-ticket items for April Year to Date payouts.

      •$228 billion for defense contractors (not soldiers – this was not cut – but increased from last year)

      •$147 billion for education programs (we have over 60 early education programs in the government)

      •$104 billion for interest (Not enough – needs to go higher)

      •$165 for Medicaid (not cut)

      •$319 for Medicare (not cut)

      •$346 for Social Security (not cut)

      At this point, we have run out of money! Nothing we do will prevent us from going deeper into debt – unless we are willing to perform deep cuts to the federal government. Congress, even if they wanted to cannot fund the rest of the federal workforce and programs without going into debt. It is a sure bet that to protect DC and the ruling/federal class, congress will be raising the debt ceiling – against the people’s wishes.

      Not raising the debt limit will only require the federal government to pay the full intererst on the debt rather than roll it over into the debt. This will require corresponding cuts THIS FISCAL YEAR to cover that cost. Cuts in areas where they are unfunded will also need to occur. The best program for this is a evenly spread across the board cut.

      The way I see it, we have about $935 billion left in real cash to spend this year. We will have about $240 billion in unpaid interest on the debt that will now have to be paid. This leaves $695 billion left over to fund the government for 5 months or roughly $140 billion a month.

      This is starting to make a $35 billion BRAC to move 128,000 federal workers and solders at $280,000/worker look like real money!

    3. George Colgrove, VA says:

      Ryan's plans is the best we have, but that is not saying much. What I want to see is NO DEFICIT SPENDING for FY12 and stop adding to the debt for FY11!

      As for FY12, all I see is a $200 billion cut from current spending. That is nothing.

      Ryan's plan suggests that we will stop the decent into debt 10 years from now, then using projections (that never pan out) he predicts that we will be out of debt in some decade far off into the future.

      After this proposal is enacted, it will provide us no relief in FY12 and just as easy as it came, it can be legislated away.

      We need significant cuts today – not spanning over 10 years from now. Even a $900 billion (under a trillion) shows we do not have the money to support this behemoth of a government. And any approved deficit spending plan is an admission that the feds are interested in taking us over the current debt limit – something Americans are against by more than a two to one margin. Why is it that we MUST HAVE abortion when the popularity of it is only 1% over half way, and we cannot have a balanced budget when it is decisive that we want one?

      Congress must be prepared to assume their prior employment if Ryan's plan is approved. Ryan, with all his rhetoric is saying WE WILL RAISE THE DEBT CEILING and WE WILL CONTINUE TO GO INTO UNPAYABLE DEBT!

      Scrap Ryan's budget and use this one:

      - Revenue: $2.2 trillion

      - Interest on debt: $450 billion

      - Minimum payback of principal: $300 billion

      - Defense: $460 billion

      - General Government: $200 billion

      - Entitlements (SS, MC/MC, pensions, etc): $790 billion

      How do we do it?

      - Consolidate all like functions into single departments (GSA, GAO) TODAY!

      - Defense – get rid of the fluff – focus reduced defense dollars on soldiers, ships and other necessary hardware. Significantly reduce staff to fit in the Pentagon so we no longer need to spend a million dollars to move just three federal workers! TODAY!

      - General government – start putting entire departments, agencies, and programs on the chopping block.

      - Entitlements – send to the private sector for administration, rein in the unfunded (never to be funded) pensions and focus on the elderly who have been conned into these systems and who will never have the resources to get themselves out.

      This is not a time for intellectual debate on merits of programs. The bank (the American people) has called the loan. We are at the fire sale stage. We need to liquidate. All of us on the outside of the beltway get it. We understand what is affront us and are willing to take the challenge.

      The only folks who are resisting this are those who benefit from it – those like Ryan who will live high off the hog for decades to come off the destruction of this nation.

      Please Mr. Ryan, you are a good guy, but this is nowhere near enough. Match the numbers with your rhetoric and do something courageous. Let us get a balanced budget for FY12. Let the democrats expose themselves by their opposition. We the voters will take care of the rest in November 2012!

    4. Rev.Mary A. Potter, says:

      Congressman Ryan, I am writing to you to urge you to get into the presidential race. I understand that you may feel to young, but you are not. I believe Kennedy was your age. While he was a senator I personally do not see much difference. With your knowledge of the USA financial problems I feel you could take Obama on in a debate and he wouldn't have a clue as to what to do. I watched and heard you last fall when you and the Republicans sat around that table wherever it was and you debated him under the table. You are just what this country needs sir. You can do this, all you need to do is form an exploritory committee, check this out, I urge you as one citizen who truly sees your future. This has been placed on my heart to urge you. Please!!! Rev. Mary A. Potter

    5. Jax Tico says:

      Paul Ryan, please don't be a statist. Take this ball and run with it. We will do our part and we will force our representative to follow.

      Just keep in mind that We The People are expecting that this is just the first budget that makes big cuts. Every year from here on out must cut, cut, cut. We know that there are still, even after this plan, lots and lots of programs, agencies, bureaucracies that must disappear.

      There are still lots of responsibilities that have to be delegated back to the states to either implement or dismiss. Restore the 10th amendment! If you decide to run in 2012, ensure your success by downsizing the role and responsibility of the executive and legislative branches. Uphold the Enumerated Powers as listed in the original Constitution.

      There are plenty of stifling rules and policies that must be sunset, so we can restore sanity back to our government. Every law, rule, regulation, statute, etc must have a sunset clause. There is lots and lots of work to do, Mr. Ryan. We will have your back so long as you are doing right by us.

    6. Dwana Townsend, Harv says:

      Dear Paul Ryan:

      Your plan is bold and I applaud you for putting yourself out there on such tough issues. No one else seems to have any guts. I have not seen any other politician to propose a detailed plan such as yours, yet they say they have one. Well I want to see it!!! Stand your ground!!!

      I read your proposal and beleive it is a great framework that should at the very least enlist more representatives into discussing these ideas and more. I agree we must reform all of the entitlement programs beginning NOW, but we have a bunch of gutless politicians out there unwilling to engage in the discussion at least not now that there is an election pending.

      Americans very concerned about our future and that of our children as well as the unborn generations to come. We don't see where new jobs will come from (the outlook is very bleak), national security (as our nation weakens economically so do our defenses), immigration reform and the lack of border security. We are also tired of all the spin and the lies coming from both sides of the isle. WE WANT SOMEONE TO BE HONEST WITH US, BE TRANSPARENT, EVEN IF IT MEANS MAKING SACRIFICES THAT WILL BE PAINFUL.

      Thank you for your boldness we need representatives like you that are willing to step out on a limb and take a stand. I wish you all the best and hope that your plan will gain momentum and support from the people and our representatives.

    7. Pingback: Must Know Headlines — ExposeTheMedia.com

    8. Bobbie says:

      warning-urgent investigation on doctors, hospitals, transitional care facilities, and all staff. An elderly friend of my fathers has been adult onset diabetic since the 70's. Otherwise in good health. She was left to deal with the fluctuations of her blood sugar as well as she can and besides downfalls of lows and highs and what that endures, she still remained in good health otherwise. She has a son but my father is her primary caregiver.

      About 3 weeks ago, Jo had a 500 blood sugar reading which she's had “high”s before and worked through them but this time she was in the presence of my father, he decided to bring her to the hospital. Keep in mind, she's in the HOSPITAL WITH HIGH BLOOD SUGAR!

      Her blood sugar remained unstable during her hospital stay when their only job was to stabilize it. She fell low and the nurse was giving her anything and any amount she wanted. Good thing my sister was there to stop her after an already substantial amount of sugar including glucose tablets. After 10 minutes, her blood sugar tested at 86. If they would've taken the test when the sugar settles, it would've given a more accurate reading into the 300s. she was visited by three doctors daily, all asking the same questions, NONE GIVING ANY REASON or INFORMATION IN RETURN. She wanted to go home after 5 days of getting no where, but they were talking about transitional care which wouldn't have been necessary if they would've focused on their job to stabilize her blood sugar and give her necessary exercise. She remained enduring. They manipulated her and her condition. She couldn't leave the hospital until she agreed to go to transitional care. Mandated by Medicare.

      The hospital kept her there with unstable blood sugar levels direct acts of incompetence and irresponsibility being she was in a controlled environment and under supposed medical supervision of the staff. Her condition was manipulated transitional care was warranted and only because of the lack of exercise and poor care from the hospital.

      While in transitional care her comfort was ignored along with possible symptoms. She was barely recognized for any duty from the numerous staff although when doing the necessary exercise regime, she was forced to do exercise until exhausted and according to a chart, not her condition.

      After 3 days she became violently ill, vomiting. The medical staff was clueless. My father found out she was being given a pill but they refused information regarding it. He told them he wanted his friend released. They told my father if she doesn't stay in transitional care for the required amount of time, Medicare wouldn't cover costs and no medical information would be released to the patient. 2 days later she went into congenital heart failure in the middle of the night under the care of the transitional facility, now back to the hospital.

      People employed under the mandates of government are disingenuous. There is no refuge when we're forced to depend on the all authoritative unaccountable, government

      If they'll manipulate one, they'll manipulate any chronic condition. Danger are the rules and regulations and wastes and incompetence to go home. If she makes it.

      We need the free market where there are people genuinely driven to the care of others. Where they're not looking or waiting for instructions from government and their bureaucratic money creator.

      With Paul Ryan's plan there's accountability and prevention of crisis, Obama sets us up for many including the costs crisis we're dealing with now. Paul Ryan takes serious matters seriously, Obama blames matters on the rich not paying their fare share instead of making corrections, seriously. Paul Ryan addresses the people with respect and as the strength of America. Obama addresses the people as weak and dependent. A man who inspires strength is a true man. A man who encourages weakness, is a weak man.

    9. Bobbie says:

      She's still in the hospital. Correction on her heart. It wasn't congenital it was congestive. Almost 1 month under government care and away from her owned and paid for home. Sent to intensive care three days ago and remains there today. Her heart went into supra ventricular tachycardia. Heart races said to be caused by anxiety…

      and probably because of the congestion brought on by lack of exercise…

      something isn't right and definitely not trustworthy.

    10. Ames Tiedeman says:

      In 2006 Obama and every Democrat in congress voted against increasing the debt limit. What does this tell you about politics in America?

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