Dr. Benishek Stresses Need to Reduce the Federal Debt and Grow the Economy

Jun 13, 2012 Issues: Budget and Spending, Economy and Jobs

WASHINGTON, DC:  Dr. Dan Benishek (MI-01) today commented on a recent report from the non-partisan Congressional Budget Office (CBO) that warns of significant economic decline and unsustainable levels government debt in the next decade.

“This report underscores the need for significant fiscal reforms in our federal government.  The CBO’s findings, along with the bleak jobs report, are evidence that changes need to be made.  I’m a doctor, not a professional politician, but like many in Northern Michigan, I know this country needs to change course,” said Dr. Benishek, a freshman lawmaker from Iron River.

The Congressional Budget Office’s “Long-Term Budget Outlook” predicts significant fiscal and economic consequences unless action is taken.  The report states that “growing debt also would increase the probability of a sudden fiscal crisis, during which investors would lose confidence in the government’s ability to manage its budget.”[1]

“We need to retool our fiscal policy now.  Let’s reduce the government’s deficits, shrink the size of government and reform the federal tax code.  The record levels of borrowing, spending and debt are hurting Northern Michigan’s economy. Unless our nation’s job providers get some certainty coming from the federal government, we cannot expect to see them start hiring again,” added Dr. Benishek

“The President recently claimed ‘the private sector is doing fine.’  But it’s not.  And it’s not fine because the federal government is standing in the way of private sector job growth.  Who wants to invest in the economy if they don’t know what their taxes will be next year or whether the federal government will be able to meet its financial obligations?  We need to make the changes that will actually grow the economy and let our kids have a chance at the American Dream,” stated Dr. Benishek

The CBO report projects that government spending as a share of the economy will increase by 53 percent by 2037.  At $15.7 trillion, the national debt has already eclipsed the nation’s Gross Domestic Product (GDP), and the CBO study suggests that the debt held by the public will eclipse the size of the economy by 2022.[2]

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[1] Congressional Budget Office (CBO), The Long-term Budget Outlook, http://cbo.gov/publication/43288

[2] Congressional Budget Office (CBO), The Long-term Budget Outlook, http://cbo.gov/publication/43288