It’s the Economy Stupid!

There can be no doubt that the number one issue facing America is the economy.  Our current economic woes, as well as the high unemployment rate can be tied directly to the federal deficit and what is or isn’t being done about it.

Treasury Department officials warn that the government will run out of cash to meet its financial obligations, such as Social Security benefits and vendor payments. Two major rating firms have warned they could take the unprecedented step of downgrading the U.S.’s credit rating if the debt ceiling isn’t raised soon.

What the media isn’t telling the American people is the most recent Social Security Trustee’s report now estimates that the program will exhaust its dedicated trust funds (one for old-age and the other for disability) in 2036. That means after the Aug. 2nd deadline Social Security checks can still be issued whether the debt limit is raised or not, regardless of what the President says.  Also, those two major bond rating agencies that the media says will downgrade the U.S.’s credit rating don’t just want to see the debt limit raised…they want the U.S. to have a credible plan to reduce the debt as well!

So, what do we do? I pledge to oppose any debt limit increase unless all three of the following conditions have been met:

1.  Cut – We must make discretionary and mandatory spending reductions that would cut the deficit in half.

2. Cap – We need statutory, enforceable caps to align federal spending with average revenues at 18% of Gross Domestic Product (GDP), with automatic spending reductions if the caps are breached.

3.  Balance – We must send to the states a Balanced Budget Amendment (BBA) with strong protections against federal tax increases and a Spending Limitation Amendment (SLA) that aligns spending with average revenues as described above.

With each passing day our nation’s fiscal health gets worse, leaving our children and grandchildren falling further into debt. Democrats seem to have given up, proposing even more borrowing in response to our massive debt addiction. With the problem growing larger every day, we must move quickly and unite behind a plan to cut spending and get our budget into balance.