In the Eurozone Spain is bracing for yet another round of painful austerity as a result of its unsustainable debt. These cuts will cripple entitlement programs that people built lives around, they will cause a spike in unemployment, and put the national security of its people at risk. This is the path big government takes you down; ballooning debt, then a crash where the bottom is not discernable.
Then why does this administration feel that the best way to fix our problems at home is to follow the same path that Europe has? Our budget deficit continues to balloon with no signs of stopping or slowing down. Historically when a nation’s debt reaches 90% as a share of GDP, economies will stagnate. Currently we are at 70% and will hit 90% in under 10 years.
This is unacceptable and can be avoided by adopting the Contract for America’s terms to pass a balanced budget amendment. This amendment will ensure spending does not accelerate at the rate it currently is and spending growth will be capped as a percentage of GDP.
Until this amendment is passed, politicians will continue to tax and spend faster and faster. When money is not coming physically out of their pockets they see no reason they can’t spend it. American government deficit spending needs to stop immediately.