March 5, 2019
Last week, the Goldwater
Institute joined with more than a dozen free-market organizations in signing a
letter urging Congress to address a “systemic threat to our economy and secure
our nation’s future” by passing resolutions introduced by Senator David Perdue
and Representative Andy Biggs regarding the national debt.
The resolutions call
our current national debt “unsustainable, irresponsible, and dangerous.” It’s
hard to argue with that: This month, the debt surpassed $22 trillion, and this number stands to grow for the foreseeable
future. And by 2048, the letter says, our debt obligations will make up one-fifth
of all U.S. spending, pushing programs like Medicare and Social Security toward
insolvency.
The letter continues,
“We call on leaders in both parties to take a first step by passing these
resolutions, and then work toward responsible bipartisan fiscal reforms that
set us on a path to financial security, protecting the promise of our country
for the most vulnerable among us and for generations to come.”
You can read the full letter below or view it here.
February 26, 2019
Dear Senators and Representatives,
The undersigned organizations urge Congress to pass the companion
resolutions introduced by Senator David Perdue and Representative Andy Biggs,
which accurately recognize the significant threat posed by America’s mounting
national debt. We encourage the administration, congressional leadership and
members of both parties to unite to address this systemic threat to our economy
and secure our nation’s future.
As stated in the resolutions, our debt is “unsustainable,
irresponsible, and dangerous.” Eclipsing $22 trillion this month, every
American alive today now “owes” over $67,000 toward the national debt. The
crisis shows no sign of abating. Trillion dollar deficits are again on the
horizon. Congressional Budget Office (CBO) projections paint an even bleaker picture.
Increases in revenue will pale in comparison to spending increases in years to
come, leading to record-obliterating deficits and debt.
In a 2018 analysis, the CBO projected that federal outlays would
increase 341% by 2048. A federal budget of $18.1 trillion that year would yield
an estimated deficit of nearly $4.7 trillion. Our present trajectory would lead
to more than $98 trillion in debt held by the public (not including
intragovernmental debt), with a publicly-held debt to gross domestic product
ratio of 152%.
On our current path, by 2026, debt service will be the third largest
item in the U.S. budget. By 2048, debt service will consume one-fifth of all
U.S. spending. This will place significant downward pressure on important
discretionary spending priorities and further jeopardize mandatory spending
programs relied upon by our most vulnerable populations. As it stands, both
Medicare and Social Security already face looming insolvency dates in 2026 and
2034, respectively.
The growth of the national debt will likely lead to higher interest
rates that will reduce the amount of private capital available to start or
expand businesses, make borrowing for purchasing a home, car or consumer goods
more expensive for citizens, suppress wages, and create greater wealth
inequality. As respected military and intelligence officials from across the
spectrum have repeatedly emphasized, the potentially destabilizing impact of
our debt poses the greatest threat to our national security—more than any
external threat.
Our nation did not arrive at this fiscal crossroad overnight, or
because of a single political party. For too long we have shirked the regular
order, budgeted by crisis, and spent without regard for consequence. There is
shared responsibility and a shared opportunity, to stop finger pointing and can
kicking, and cross political divides to tackle one of the most consequential
issues of our time. It starts with a simple step—admitting there is a problem.
We can do that by passing these resolutions.
Americans know there is a problem and have an appetite to solve it.
Polling by the Peter G. Peterson Foundation found that eight in ten voters
believe the President and Congress should spend more time addressing the
national debt. Nearly three-quarters of voters (71%) agree that the national
debt should be a top-three priority, including 69 percent of Democrats, 79% of
Republicans and 68% of independents. In a 2018 Gallup poll, 77% of respondents
said they worried about budget deficits a “great deal” (51%) or a “fair amount
(26%).
We call on leaders in both parties to take a first step by passing these resolutions, and then work toward responsible bipartisan fiscal reforms that set us on a path to financial security, protecting the promise of our country for the most vulnerable among us and for generations to come. The time to act is now.
Dan Caldwell
Concerned Veterans for America
Executive Director
Tim Phillips
Americans for Prosperity
President
Daniel Garza
President
The LIBRE Initiative
Nathan Nascimento
Freedom Partners Chamber of Commerce
Executive Vice President
Adam Brandon
President
FreedomWorks
Tom Schatz
President
Council for Citizens Against Government Waste
Jonathan Bydlak
President
Coalition to Reduce Spending
Edward King
President
Defense Priorities Initiative
David Williams
President
Taxpayers Protection Alliance
Seton Motley
President
Less Government
David McIntosh
President
Club for Growth
Victor Riches
President and CEO
Goldwater Institute
George Landrith
President
Frontiers of Freedom
Lisa B. Nelson
Chief Executive Officer
American Legislative Exchange Council
Pete Sepp
President
National Taxpayers Union
