Progressive Talking Points 3/03/06

U.S.: Spending Like a Teenager

Treasury officials told Senate aides yesterday that without an increase in the nation's $8.18 trillion debt limit, the government "would default on obligations for the first time in history sometime during the week of March 20." Since a federal default will not happen, the debt limit will increase to around $9 trillion – the fourth increase in 5 years. This increase will likely pass Congress without much of a debate, as The New York Times warned the Senate may "be put to a voice vote, so that no individual would have to go on record as approving the measure." At a time when Americans are struggling with debt and savings, the federal government is making no effort to get its financial house in order, preferring instead to borrow from Peter to pay Paul.

• The government is setting a terrible example for America’s families. The Vice President said yesterday that "The American dream begins with saving money...” While that is true, the reality is that millions of Americans are living paycheck to paycheck, and personal savings are at an all time low. The American people are not getting a good example from the federal government. The Bush administration managed to squander the $5.6 trillion projected ten year surplus and the current national debt stands at $8,269,768,312,946.41.
  
  
• Foreign countries are increasingly controlling our debt. ABC News reported that "Foreign entities own a little more than 53 percent of the U.S. federal debt in publicly traded world markets." While there is nothing inherently wrong with foreigners buying our debt - foreign central banks have kept interest rates low - a "disorderly situation would occur if foreign money dried up suddenly when the United States still needed it. Living at the mercy of the main financiers of our debt puts the U.S. in peril should anything happen to the foreign markets or their money stream.
  
• The Bush administration has been abusing the emergency spending measure. The Bush administration has continually bypassed standard budget procedures with “emergency” spending bills. Emergency spending bills should "are for one-time, unforeseeable calamities" but the White House has financed the entire war in Iraq, as well as the war in Afghanistan" by labeling the ongoing conflicts as emergencies. When you add increased emergency spending on natural disasters, you have a budget process that is out of control. Senate Budget Chairman Judd Gregg has called these tactics "irresponsible" and "unrealistic."