Yesterday, Moody’s issued a new statement about the debt limit, warning that if the debt limit is raised without agreement on a budget that includes long-term debt reduction and puts us on a new spending trajectory, the credit rating of the United States would be downgraded to negative. Rough translation: there is no more road left to kick the can down.
We have a debt crisis not because the debt ceiling is too low but because the debt is too high. It is spending-driven. While the president didn’t create the problem, his policies have pressed on the accelerator. If more spending and more debt meant more jobs, then this president’s policies would have produced the strongest economic recovery in our nation’s history. Instead, they’ve made it worse.
Thomas Jefferson described “public debt” as “the greatest of the dangers to be feared.” Two centuries later, the United States of America finds itself buried under a mountain of debt, nearly $14.3 trillion—the highest in our nation’s history. We must cut up the credit cards and stop spending money we do not have.
Next week, House Republicans will vote on the “Cut, Cap and Balance Act”. This bill will cut total spending by $111 billion over the next year, cap annual government spending at it’s historic average of 20% of GDP, and require the government to balance the budget—just like families and business owners all across East Texas. Our historic debt has lead to a historic crisis. It is time for a historic solution.