President Barack Obama doesn't understand the danger his fiscal spending poses for the U.S. economy and that it is taking the country along the same path as indebted Greece and Spain, says U.S. Rep. Jim Jordan. "I don't think he understands how serious the situation is," the Ohio Republican said in an exclusive Newsmax.TV interview.
"When you start looking at our debt-to-GDP ratio, our deficit-to-GDP ratios, we're starting to approach the countries you've read about for the last year and a half, Portugal, Spain, Greece, Ireland — these countries that are in real financial problems.," he said
"And the situation is so serious if we don't start dealing with it now, the window of opportunity to put the country back on the right path is closing rapidly."
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For Jordan, the recently introduced Spending Reduction Act will cut $2.5 trillion in spending during the next decade and help bring discretionary spending back to 2006 levels and hold those levels, what he calls a good first step.
"We've also got to look at the entitlement programs, the mandatory spending. We've got to look at defense."
The U.S. budget deficit will hit $1.5 trillion this year, according the Congressional Budget Office (CBO).
Limited revenue coupled with increased spending is pushing the spending gap to 9.8 percent of gross domestic product, according to the AFP newswire.
Economic recovery, meanwhile, is helping, but not enough.
"The recovery now under way might be expected to lessen the budget imbalance in 2011 by increasing tax revenues and decreasing spending for certain income-support programs, such as unemployment compensation," the CBO says
"However, revenue growth will be restrained by the slow and tentative pace of the recovery and by the 2010 tax act."
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