Why Are the Budget Reforms Important?
March 17, 2015
Congress should cut spending before it considers raising the debt limit. Since Congress suspended the debt limit for more than a year last February:
- The debt subject to the limit has grown by nearly $1 trillion, from $17.2 trillion to more than $18.1 trillion.
- A $900 billion increase in the national debt adds more than $2,800 in additional government debt for every American.
- Over the past 13 years, the debt subject to the limit has increased by nearly $12 trillion.
- U.S. public debt, which has the largest share of the debt, doubled since before the Great Recession. It is at $41,000 for every American, and a child born in 2015 will be faced with a public debt of $142,000 by the time he or she leaves college, absent budget reforms.
Extensive research shows that excessive debt burdens job growth and ultimately lowers Americans' personal incomes. Unless America changes course soon, younger and future generations will inherit a massive national debt and a less prosperous nation.
Lawmakers must make the tough choices to cut government spending, just as American households have trimmed back their own unnecessary spending in recent years.
As the new Congress debates its fiscal year 2016 budget it could seek to change the nation's dangerous fiscal course, support a budget based on real constitutional priorities and unshackle the enormous power of free people to create jobs, wealth, and prosperity.
Source: Romina Boccia, "The Return of the Debt Limit," The Daily Signal, March 16, 2015.
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