Congressional Budget Office (CBO) Director Douglas Elmendorf told the House Budget Committee today that America faces a “daunting” fiscal future, marked by the threat of a debt explosion that has led to a crisis. While Republicans have passed a budget that would pay down our debt over time and spur private-sector job growth, Democrats haven’t passed a budget in more than two years. At the hearing, Elmendorf laid out the consequences of Democrats’ inaction:
- “By the end of this year … federal debt will reach roughly 70 percent of gross domestic product (GDP) - the highest percentage since shortly after World War II.”
- “Debt as a share of GDP would exceed its historical peak of 109 percent by 2023 and would approach 190 percent in 2035.”
- “Large budget deficits and growing debt would reduce national saving, leading to higher interest rates, more borrowing from abroad, and less domestic investment – which in turn would lower income growth in the United States.”
- “Higher levels of debt imply higher interest payments on that debt, which would eventually require either higher taxes or a reduction in government benefits and services.”
To add insult to injury, Democrats have not only abdicated their most basic responsibility to pass a budget, but are now calling for even more job-crushing ‘stimulus’ spending and tax hikes. House Speaker John Boehner reacted today:
“Democrats don’t have a plan for jobs. You heard them say again yesterday: what do they want? More ‘stimulus’ spending and higher taxes. Well, on the same day that the CBO called our debt crisis ‘daunting,’ Democrat leaders came out and asked for more spending. Now if you recall, we tried this: it’s called the ‘stimulus’ plan. And it didn’t work. At a time when millions of Americans are struggling, it’s alarming how Democrats continue to call for more spending.”
With Democrats refusing to lead, and advocating more of the same failed economic policies, it is no surprise that a Bloomberg News survey released yesterday found that “a majority of Americans” (including 40 percent of Democrats) “say job growth would best be revived with prescriptions favored by” Republicans, including cutting spending and preventing tax hikes on American families and small businesses. These proposals are also central to the Republican Plan for America’s Job Creators, a framework built on the Pledge to America that will help eliminate barriers to job growth.
Learn more about the House-passed Path to Prosperity budget here, and see how it stacks up against Democrats “spending the future” budget here. And stop by Jobs.GOP.Gov to learn more about the Plan for America’s Job Creators.