Democrats Have 15 Trillion Excuses for Not Balancing the Budget

November 18, 2011

As National Debt Tops $15 Trillion, Democrats Say “Now is Not the Time” to Force Washington Live Within Its Means

The national debt crossed $15 trillion this week, marking an unfortunate milestone that signals the seriousness of America’s fiscal crisis.
Despite this new evidence of America’s fiscal challenges, Democrats continue to insist that “now is not the time” for a balanced budget amendment that would force Washington to live within its means and put America back on a path to fiscal responsibility.
Democrats who oppose the balanced budget do so against the wishes of the American people. Polls continue to show strong support for a balanced budget amendment, but Democrats just can’t break their addiction to spending.

BACKGROUND

The national debt crossed $15 trillion this week, marking an unfortunate milestone that signals the seriousness of America’s fiscal crisis:

“NATIONAL DEBT CROSSES $15 TRILLION MARK”: “The total public debt outstanding was listed at $15,033,607,255,920.32 on Wednesday afternoon, with two thirds of that debt held by the public and one third made up of intergovernmental holdings.” (Brian Montopoli, “National Debt Crosses $15 Trillion Mark,” CBS News, 11/16/2011)

“NATIONAL DEBT NEARS SIZE OF U.S. ECONOMY”; TRANSLATION: GOV. ABOUT TO “OWE MORE THAN [WE] PRODUCE IN A YEAR”: “A debt-to-GDP ratio of 98% is bad enough. It puts the U.S. closer to rarified territory — countries that owe more than they produce in a year.” (Richard Wolf, “National Debt Nears Size of U.S. Economy,” USA Today, 10/29/2011)

MAJOR ECONOMIC STUDY LINKED GOVERNMENT DEBT TO SLOWER ECONOMIC GROWTH: “The sharp run-up in public sector debt will likely prove one of the most enduring legacies of the 2007-2009 financial crises in the United States and elsewhere… Our main finding is that across both advanced countries and emerging markets, high debt/GDP levels (90 percent and above) are associated with notably lower growth outcomes… Seldom do countries simply ‘grow’ their way out of deep debt.” (Carmen M. Reinhart and Kenneth S. Rogoff, “Growth in a Time of Debt,” American Economic Review Papers and Proceedings, 12/31/2009)

GOLDMAN SACHS RESEARCH: “A DEFICIT-FINANCED BOOST WILL EVENTUALLY LEAD TO A DRAG”: “The eventual effect of sustained fiscal imbalance is slower growth and greater risk of a fiscal crisis. Our estimates suggest that a 10-point increase in the debt/GDP ratio lowers growth four years later by 0.2 percentage point, and increases the probability of a debt crisis by 2.5% in the aftermath of a financial crisis like the recent one. …

“Ultimately, what goes up must come down. In the case of the federal budget, this means that a deficit-financed boost to growth will eventually lead to a drag. While policymakers can try to smooth the transition by phasing in cuts and incorporating multi-year fiscal commitments, achieving a sustainable fiscal policy will inevitably be a painful but necessary process.” (Jan Hatzius and Alec Phillips, “Fiscal Restraint: A Question of When, Not If,” Goldman Sachs Global ECS U.S. Research, 3/2/2011)

Despite this new evidence of America’s fiscal challenges, Democrats continue to insist that “now is not the time” for a balanced budget amendment that would force Washington to live within its means and put America back on a path to fiscal responsibility:

DEMOCRAT WHIP STENY HOYER: “NOW IS NOT THE TIME” FOR A BALANCED BUDGET AMENDMENT: “House Minority Whip Steny Hoyer, D-Md., said that although he has supported a constitutional amendment to require a balanced budget in 1995, now is not the time.” (Gregory Korte, “House Dems Will Block Balanced Budget Amendment,” USA Today, 11/5/2011)

“DEMS BALK AT BALANCED-BUDGET BID,” “SOME OF THE SAME DEMOCRATS WHO SAID ‘YES’ 16 YEARS AGO ARE SAYING ‘NO WAY’ THIS TIME AROUND”: “In the midst of the Republican revolution of 1995, more than 70 House Democrats and 228 Republicans embraced a balanced-budget amendment — a show of bipartisanship over the nation’s fiscal future that today seems unimaginable.

“Now the GOP is taking another shot at the amendment in 2011, and some of the same Democrats who said ‘yes’ 16 years ago are saying ‘no way’ this time around.”(Marin Cogan, “Dems Balk at Balanced-Budget Bid,” Politico, 11/16/2011)

HOYER FLIP-FLOPS ON BBA, NOW WHIPPING AGAINST A BALANCED BUDGET AMENDMENT: “Minority Whip Steny Hoyer — a yes vote in 1995 — is unapologetically whipping against the 2011 version of the balanced-budget amendment, which will see a vote in the House later this week.” (Marin Cogan, “Dems Balk at Balanced-Budget Bid,” Politico, 11/16/2011)

HOYER’S HAVING SUCCESS, EVEN AMONG SO-CALLED “BLUE DOG” DEMOCRATS LIKE REP. MIKE MICHAUD (D-ME): “[MICHAUD:] ‘I’ve long supported a balanced-budget amendment, but this latest version falls short.'” (Jonathan Riskind, “Michaud Opposes Balanced-Budget Bill,” Portland Press Herald, 11/17/2011)

Democrats who oppose the balanced budget do so against the wishes of the American people. Polls continue to show strong support for a balanced budget amendment, but Democrats just can’t break their addiction to spending:

67% AMERICANS THINK THE FEDERAL GOVERNMENT’S FINANCIAL SITUATION HAS GOTTEN WORSE UNDER OBAMA’S WATCH, ONLY 8% THINK BETTER: (“Voters Believe America is Worse Off Than When Obama Took Office,” Resurgent Republic, 11/8/2011)

57% OF VOTERS SUPPORT BBA, ONLY 36% OPPOSE: “Fifty-seven percent of voters agree that a balanced budget amendment is a good idea because it is ‘the only way we will restore fiscal responsibility, create jobs, and stop spending money we don’t have,’ compared to 36 percent who think it is a bad idea because ‘the federal budget is not like a family budget, and we need the flexibility to respond to economic needs and emergencies,’ according to Resurgent Republic’s September survey.” (Luke Frans, “Broad Coalition of Voters Support a Balanced Budget Amendment,” The Daily Caller, 11/16/2011)

NEARLY 60% OF INDEPENDENTS WANT BBA: (Luke Frans, “Broad Coalition of Voters Support a Balanced Budget Amendment,” The Daily Caller, 11/16/2011)

39% OF DEMOCRATS SUPPORT BBA: (Luke Frans, “Broad Coalition of Voters Support a Balanced Budget Amendment,” The Daily Caller, 11/16/2011)

DEMOCRAT-TARGETED SUBGROUPS SUPPORT BBA: WOMEN, UNION HOUSEHOLDS, YOUNG VOTERS: “Mr. Obama is not immune to voter ire either. A balanced budget amendment holds support among critically important 2012 subgroups: female voters (54 to 36 percent), voters age 18 to 34 (56 to 36 percent), and union households (56 to 37 percent). Non-urban voters — the target audience of Mr. Obama’s taxpayer-funded bus tours — support a balanced budget amendment by 61 to 33 percent.” (Luke Frans, “Broad Coalition of Voters Support a Balanced Budget Amendment,” The Daily Caller, 11/16/2011)

98 DEMOCRATS ARE RALLYING AROUND OBAMA’S CALLS FOR MORE STIMULUS:(Thomas.gov, Accessed 11/17/2011)

WHITE HOUSE SAYS “WE CAN’T WAIT” FOR MORE STIMULUS SPENDING, EVEN THOUGH THE FIRST ONE FAILED: “President Obama’s growing impatience with Congress’ refusal to ‘pass this bill now’ has launched a new approach — bypassing Congress by taking actions that don’t require congressional support and insisting that ‘We Can’t Wait’ for any more delays on Capitol Hill.” (“President Begins ‘We Can’t Wait’ Economic Push,” Fox News, 10/24/2011)