A leading voice for government spending restraint, Sen. Judd Gregg (R-N.H.), ranking Republican on the Senate Budget Committee, says that the U.S. economy faces a future as a “banana republic” if current federal fiscal policies continue.
“We’re creating these massive debts which we’re passing on to our children,” Gregg said on CNN on Sunday.
“We’re going to undermine fundamentally the quality of life for our children by doing this. You can’t blame that on George Bush.”
Using the Obama administration’s own projections, the budget deficit for the next 10 years is $1 trillion per year. Public debt as a percentage of gross domestic product also will increase.
“We’re basically on the path to a banana-republic-type of financial situation in this country. You can’t keep running these programs out and not paying for them,” said Gregg. “And you can’t keep throwing debt on top of debt. Standards of living will drop if we keep this up.”
If government-run health care, or the so-called public option plan, is passed by the Congress, the deficits will only get worse, Gregg added.
The versions of health care reform voted out of committee on Capitol Hill are nothing but “a huge expansion of government,” he said.
“You’re talking about taking the government and increasing it by $1 to $2 trillion over the next 10 years,” Gregg said.
Growing government at that rate would have a “very debilitating effect” on the overall economy, he said.
Others in the mainstream media agree. A report carried by the Associated Press indicates the total national debt is projected to balloon over the next decade unless major changes are made now.
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