[Congressional Record (Bound Edition), Volume 156 (2010), Part 3]
[Extensions of Remarks]
[Page 4470]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       WHEN WILL AMERICA RECOVER?

                                 ______
                                 

                          HON. PETER HOEKSTRA

                              of michigan

                    in the house of representatives

                         Sunday, March 21, 2010

  Mr. HOEKSTRA. Madam Speaker, I submit the following.

                       When Will America Recover?

        (By Hon. Nick Smith, former U.S. Representative (MI-07))

       I just returned from speaking at several British 
     universities on American politics and the economy. England, 
     like the United States, has high unemployment and huge 
     government debt. Many I spoke to believed that the current 
     global economic mess is all our fault. In a sense, they are 
     right. As the world's leading economy, our economic health 
     affects everyone, especially trading partners like England. 
     We are its largest trading and investment partners at $400 
     billion last year.
       The students were most interested in my opinion on how long 
     it would take before America recovers economically. Some 
     White House economists are predicting that we can fully 
     recover from this recession in a year or two. As I told the 
     students, however, it will take ten years or more to rebuild 
     our economy--and then only if we can control spending. It's 
     not just ``the government'' or even ``the Democrats.'' All of 
     us, government and consumers alike, have been living on 
     borrowed money. Our national savings rate three years ago was 
     a negative number. One bit of recent good news is that 
     consumers have increased their estimated average individual 
     savings rate to over five percent, which means less consumer 
     spending in the short run but a stronger overall economy in 
     the long run. The Government needs to do likewise.
       But Congress not only continues to borrow, it is borrowing 
     more than ever with no sign of stopping. Deficit spending, 
     expected to hit $1.5 trillion, is one third of the 
     President's proposed budget. His budget projects huge 
     deficits every year for the foreseeable future. Our debt, 
     which is the sum of all historical deficits, now adds up to 
     $12 trillion. Interest on that debt consumes almost ten 
     percent of federal spending. Without dramatic change the 
     future will be much worse. Interest rates will be doubling 
     and the unfunded liabilities (what we've promised to pay out 
     in the future) for entitlements such as Medicare, Social 
     Security, Medicaid and veteran's benefits adds up to another 
     $60 trillion debt--in today's dollars.
       Reckless spending has mostly been driven by Congressmen 
     currying favor with voters who demand ever more money and 
     services from ``the government'' to solve their problems. But 
     the government gets its money from current taxpayers and 
     lenders. Who will repay these lenders? Future taxpayers. Each 
     baby born in this country is instantly saddled with $40,000 
     of government debt, not including interest.
       And that does not include future deficit spending or the 
     $60 trillion in unfunded liabilities. We have ended up with a 
     tax, borrow, and spend government that will handicap future 
     generations. Ten years ago, our federal spending was 18% of 
     GDP, 4 years ago it was 20%, and today it's over 24%. The 
     dollar increase will have gone from $1.8 trillion in 2000 to 
     $3.8 trillion in the President's budget. That is over 200 
     percent of spending ten years ago.
       Washington's over-spending not only mortgages our 
     children's future, it crowds out business and industry 
     borrowing today, for research, expansion and ultimately jobs.
       As alarming as these numbers are, even more worrisome is 
     that our political and economic system is nearing a tipping 
     point that, if reached, will change this country forever. 
     Today 50% of voters pay less than 2% of the total income tax. 
     These voters want the government to solve more of their 
     problems, and why not? It's in their best interest to elect 
     politicians who will spend more because they don't have to 
     pay for it, and it's in politicians' best interest to vote 
     for that spending to get reelected. Meanwhile, countries like 
     Communist China, which has lent the United States nearly a 
     trillion dollars, gains more and more influence in foreign 
     affairs, literally at our expense.
       The point is that we're close to losing our status as a 
     strong economic power. That affects us, our children, 
     England, and the rest of the world who rely on us for our 
     leadership and for much of their own economic well being. It 
     is in all of our interest to be more self sufficient, ask 
     less of Washington and bring down government spending.

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