New Budget Committee Report: Skyrocketing Debt Hampering Private-Sector Job Growth | Speaker.gov

According to a new – and timely – report released by the House Budget Committee, the skyrocketing debt brought on by Democrats’ failed ‘stimulus’ spending binge “has emerged as one of the main factors weighing down the economy.”  Titled “The Debt Overhang and the U.S. Jobs Malaise,” the report cites several economists who confirm that Washington Democrats’ spending spree has not only accelerated the path toward fiscal crisis, but is also “significantly holding back a robust recovery and sustained job creation.” Here are several highlights from the report:

  • Major Spending Cuts Needed to Spur Private-Sector Job Growth. “Stanford University economists George Schultz and John Taylor, along with Nobel laureate Gary Becker of the University of Chicago, wrote recently: ‘Credible actions that reduce the rapid growth of federal spending and debt will raise economic growth and lower the unemployment rate. Higher private investment, not more government purchases, is the surest way to increase prosperity.’”
  • Reducing Economic Uncertainty Will Help Get Employers Off the Sideline. “Taylor’s view is that the economic data tell us that the government needs to encourage private investment, rather than keep its own spending high, in order to encourage job growth. He believes that vast uncertainty, linked to the prospect of higher future tax rates and interest rates, is having a chilling effect on private investment and therefore job creation.”
  • Reining in Debt Will Reduce Threat of Job-Crushing Tax Hikes. “Rising debt levels are tomorrow’s tax increases or interest rate hikes, which adversely impacts hiring decisions today.  As debt levels continue to rise, businesses will think twice about hiring or buying new equipment because government will tax the returns on these investments at much higher rates. The result of such economic uncertainty is often a hiring freeze and delayed expansion plans.”
  • House-Passed Path to Prosperity Budget Key to Addressing Debt, Helping Create Jobs. “Many economists contend that the policy path outlined in the House-passed FY2012 budget resolution provides the critical ingredients for economic growth. Stanford economist John Taylor wrote: ‘[T]he House budget plan… approximately balances the budget with no increase in taxes. This is good news for economic growth.’

The “dismaljobs report released by the Department of Labor today, showing yet another uptick in the unemployment rate, underscores the urgent need to get our fiscal house in order to help the economy create more American jobs. The House has passed a budget that will give job creators the certainty they need to grow their businesses and hire new workers.  It has been 800 days since Senate Democrats have passed a budget, and they continue pushing for higher taxes that will only make matters worse.  As House Speaker John Boehner (R-OH) made clear in the wake of today’s disappointing news:

“The ‘stimulus’ spending binge, excessive government regulations, and our overwhelming debt continue to hold back job creators around our country. Tax hikes on families and job creators would only make things worse. …

“You’ve heard me say before: a debt limit increase that raises taxes, or fails to make serious spending cuts, won’t pass the House.”

Learn more about the House-passed jobs budget at: http://budget.house.gov/fy2012budget/, and check out the full report on “The Debt Overhang and the U.S. Jobs Malaise” here.