Our National Debt Matters Now

Statement

"This week, we at the House Financial Services Committee, kicked off a series of hearings examining the debt crisis with our first entitled -- "Why Debt Matters'.

"So why does debt matter? And why does it matter right now?

"Debt matters because our country is on an unsustainable fiscal path that leads to fiscal ruin -- driven by irresponsible spending of money we don't have.

"Our debt has grown dramatically over the last 6 years, both in raw amount--trillions of dollars!--and relative to our economy as a whole. In 2008, our national debt was ten trillion dollars--roughly 68 percent of the country's economic output. By the end of this year, the president's own Office of Management and Budget projects it will be almost eighteen trillion dollars--larger than our entire economy.

"And it's only getting worse. It's estimated that our spending will grow by 10 percent of our GDP over the next 10 years while our revenues grow by only half that. How long could a business stay in operation if its costs were more than double its sales revenue every year?

"The consequences of our spending-driven debt crisis are real. Not just for hard-working taxpayers, but also for our future generations.

"The debt slows economic growth because it takes future dollars out of the economy through less savings and investment today, as businesses and individuals plan for higher taxes and lower returns on their money.

"Even the nonpartisan Congressional Budget Office says that a debt of this magnitude will have "significant negative consequences for both the economy and the federal budget." Those consequences include a "higher interest rates" on loans and a "crowding out" of businesses purchasing capital goods, "such as factories and computers" which prevents the job-creation we desperately need.

"But it doesn't stop with the economy. Failure to confront our debt problem poses a threat to our national security, and diminishes America's place on the world stage. And it means important safety-net programs like Medicaid and housing assistance might not be around to serve the truly needy.

"Our debt crisis is serious. It DOES matter. Proverbs tells us "a good man leaves an inheritance to his children's children." But if Washington keeps spending money we don't have, we will only leave our grandchildren with more bills and a less prosperous America. Hardworking taxpayers deserve better.

"We can't afford NOT to act on this crisis."

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