National liberal fiscal insanity, or why Utah needs a spending amendment

Whlogo1As noted on The Weekly Standard blog, the acting director of President Obama’s Office of Management and Budget wrote an op-ed published across the country, as well as put up on the White House blog, claiming that “the President’s Budget … shows how we can live within our means while further growing the economy, strengthening the middle class, and securing the nation’s future.”

This budget, according to White House budget projections, adds nearly $5.3 trillion to the national debt between 2014 and 2023 and creates annual deficits ranging from $439 billion to $744 billion over that time period. For perspective, adding $5.3 trillion to the national debt is the equivalent of adding nearly $17,000 in debt for every man, woman and child in America in 2012. And this, to America’s liberal political leaders, is what “living with in our means” looks like.

According to the American Institute of CPAs, adding entitlement program costs (Medicare, Social Security, etc.) to the current national debt means U.S. government deficits are $2.5 trillion more than the household net worth of the entire country, so claiming that adding $5.3 trillion to the national debt over 10 years is the path to “living within our means” borders on insanity.

This would all be simply an academic debate for Utah, if it weren’t for the fact that nearly one-third of the state’s budget came from the federal government, according to the Tax Foundation. Relying on Washington, D.C., to continue paying for Utah’s public schools, health care for the poor, road maintenance, and law enforcement is going to become an increasingly risky proposition moving forward.

This is one reason why Utah policymakers should pass a spending amendment to the Utah Constitution for Utahns to vote on. By doing so, we can protect Utah children and families against the “spending bias” in Washington, D.C. that creates so much risk for Utahns.

In short, we can be an example to the nation of what “living within our means” really looks like.

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2 Responses to National liberal fiscal insanity, or why Utah needs a spending amendment

  1. Pingback: Sutherland Institute » National liberal fiscal insanity, or why Utah needs a spending amendment

  2. RD Hunt says:

    The deficit drops from $744 billion dollars per year, to $439 billion per year, in other words it is trending in the right direction.

    And actually it is better to look at the deficit as a percent of the GDP, which shows the deficit falling from 4.4% of the GDP to 1.7% of the GDP.

    And this is important, as the when the deficit drops below 3% of the GDP that means it is growing slower then the overall growth rate of the economy itself. Or better said, our total debt would be shrinking as a percentage of our GDP. And it is projected to even be under the inflation rate by 2023.

    Clearly President Obama is handling the Debt situation just fine, being it down gradually as to prevent major shocks to the economy that could derail the recovery. Clearly the slash and burn stupidity of European Austerity doesn’t work, with a long list of Nations in Europe going passed 30% unemployment rates after passing giant government cuts through, and Britain going through a triple dip recession due to their government cuts.

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