The fiscal mess that Washington finds itself in is a result of decades of reckless spending by both parties and will not be solved in one budget or one year. The recent decision by Standard and Poor's (S&P) should serve as another wake-up call for Washington to do the hard work and change the trajectory of Washington's spending habits.
The fiscal mess that Washington finds itself in is a result of decades of reckless spending by both parties and will not be solved in one budget or one year. The recent decision by Standard and Poor’s (S&P) should serve as another wake-up call for Washington to do the hard work and change the trajectory of Washington’s spending habits.
In an op-ed earlier this year, I argued that the severity of the U.S. economic situation is irrefutable, and we are part of a world economy whose situation is precarious at best. We need to take a hard look at the European crisis and recognize that we may not be far behind. To get our fiscal house in order, we must continue to cut spending and enable our job creators and entrepreneurs to get back to the business of creating jobs. America needs to wake up and begin, in earnest, efforts to get our economy going again. If the United States does not take immediate action to rein in spending and pay down our debt, we could be subjected to similar financial extremes seen in Greece, Portugal and Ireland, where the credit markets are basically dictating this restructuring.
I am honored to be a part of a new majority in the House that has been working since January to put the brakes on out-of-control spending. The new majority in the House has listened to the American people and demonstrated that we are serious about tackling this spending-and-debt problemthrough our budget, thePath to Prosperity, and the Cut, Cap, and Balance Plan and theBudget Control Act.
In April, the House passed its budget, which cut $6.2 trillion over the next decade, putting the nation on a path to prosperity. This budget plan is focused on ending wasteful spending, making Washington more efficient, showing respect to hard-working taxpayers and making the tough choices today that save our children from even tougher choices tomorrow. While these cuts are essential, the House budget also contains several mechanisms that will help grow revenues without increasing taxes.
The S&P report calls entitlement reform -- one of the cornerstones of the House budget, The Path to Prosperity – “key to long-term fiscal sustainability.” The House budget seeks to save Medicare, because as most Americans understand, the system is going broke. According to the latest Medicare Trustees report, Medicare will be insolvent by 2024, so if we do nothing, there will be a sharp reduction in benefits when this happens. The House budget does not make any changes to Medicare for those Americans currently age 55 and older, but it does introduce competition and choice into the program for future generations in order to strengthen and preserve it for them.
Another important element to getting Washington to live within its means is the passage of a Balanced Budget Amendment to the Constitution. As a member of the Balanced Budget Amendment Caucus, a group of lawmakers dedicated to advancing the measure in Washington, I have been advocating for its passage since coming to Washington in 2009. I am an original cosponsor of H.J. Res. 1, a commonsense measure that would prohibit the federal government from spending more than it takes in. Borrowing 42 cents on every dollar this country currently spends is not acceptable, especially when we must pay the borrowed money back with interest. Both chambers will be voting on a Balanced Budget Amendment this fall, and I believe it is the real long-term solution to changing the trajectory of Washington’s spending habits.
Our country is engaged in an epic battle over the size and scope of the federal government, and the debate is taking place solely on conservative principles. The new majority in the House has led the fight for controlling spending and saving our children and grandchildren from national bankruptcy, voting to actually shrink a federal government that has done nothing but expand for the past 40 years. The conservative message of lower taxes and spending cuts will lead to a stronger economy, less debt and more opportunities to pursue the American Dream for future generations.
