Last week when the President met with the Republicans at their retreat in Baltimore the Q&A session ended with an interesting exchange between Rep. Jeb Hensarling, TX 5th. Watch the exchange below and then view the Press Release put out Hensarling’s office providing the factual support of his comments. What makes this story even better is tht this week the President proposed a budget that was even larger than Hensarling had feared. Notice that the President again takes no ownership for the current economic situation and can’t man up with truth on what he is going to propose for the new budget.
In his Stte of the Union speech, Obama said. “I know that some in my own party will argue that we can’t address the deficit or freeze government spending when so many are still hurting. I agree, which is why this freeze won’t take effect until next year, when the economy is stronger. But understand — if we don’t take meaningful steps to rein in our debt, it could damage our markets, increase the cost of borrowing, and jeopardize our recovery — all of which could have an even worse effect on our job growth and family incomes.” His idea of a responsible budget is 3.8 trillion dollars that is 25.5% of the GDP.
|For Immediate Release
January 29, 2010
|Contact: George Rasley
WASHINGTON, DC — Congressman Jeb Hensarling, Vice Ranking Member of the House Budget Committee, released the following statement and fact summary sheet after President Obama challenged his facts on House Republican budget priorities verses Democrat budget priorities:
“I asked the President today if he intended to propose the type of spending that has put our nation on the path to bankruptcy. Unfortunately, he didn’t assure taxpayers that he was committed to stopping the spending.
“The President also challenged the facts I presented to him about House Republican budget priorities and Democrat budget priorities. I am happy to provide him with the following facts to back-up my statements. I stand by what I said.
“I have great respect for President Obama. I am grateful he chose to address the House Republicans – and I give him credit for accepting our invitation. But, again, he didn’t answer my specific question on whether he would continue us on a path to tripling the national debt and increasing government spending to 24.5% of the economy.
Assertion: “The Republicans proposed a (Fiscal Year 2010) budget that ensured that government did not grow beyond the historical standard of 20% of GDP.”
FACT: Under the budget proposal put forward by House Republicans, spending as a percent of GDP is 20.7% of GDP in 2015, and in 10 years is at 20.7% of GDP. Source: House Budget Committee Republicans “The Path to American Prosperity” Budget Alternative, Table S-1 http://www.house.gov/budget_republicans/press/2007/pr20090401_gopbudget.pdf. Historical standard is 20.7% of GDP. Source: Heritage Foundation http://s3.amazonaws.com/thf_media/2010/pdf/wm_2780.pdf
Assertion: “It was a budget that actually froze immediately nondefense, discretionary spending.”
FACT: The House Republican budget froze non-defense/non-veteran spending for 5 years (FY2010-14). Source: House Budget Committee Republicans “The Path to American Prosperity” Budget Alternative, Page 39 http://www.house.gov/budget_republicans/press/2007/pr20090401_gopbudget.pdf
Assertion: “It spent $5 trillion less than what was ultimately enacted into law.”
FACT: The House Republican budget called for $36.913 trillion in spending over 10 years, whereas CBO estimated in March that the President’s budget would spend $41.726 trillion over 10 years. This is a difference of $4.813 trillion over a 10 year period.
Source: House Budget Committee Republicans “The Path to American Prosperity” Budget Alternative, Table S-1 http://www.house.gov/budget_republicans/press/2007/pr20090401_gopbudget.pdf and CBO’s Baseline and Estimate of the President’s Budget, June 2009 http://www.cbo.gov/ftpdocs/102xx/doc10296/06-16-AnalysisPresBudget_forWeb.pdf
Assertion: “What were the old annual deficits under Republicans have now become the monthly deficits under Democrats.”
FACT: According to CBO’s September 2009 Monthly Budget Review http://www.cbo.gov/ftpdocs/105xx/doc10552/09-08-mbr.htm July 2009’s deficit was $181 billion. According to CBO’s December 2009 Monthly Budget Review http://www.cbo.gov/ftpdocs/108xx/doc10825/12-4-09MBR.htm October 2009’s deficit was $176 billion. Comparatively, according to OMB’s Historical Tables (Table 1.1) http://www.whitehouse.gov/omb/budget/Historicals/ Republicans’ last annual deficit was $160.7 billion in FY2007.
Assertion: “The national debt has increased 30%.”
FACT: According to CBO’s January 2010 Budget and Economic Update (Table F-1) http://www.cbo.gov/ftpdocs/108xx/doc10871/AppendixF.shtml096834 the debt held by the public at the end of FY2008 was $5.803 trillion, and at the end of FY2009 was $7.544 trillion. This is an increase of 30%.
Assertion: “Your administration proposed a budget that would triple the national debt over the next 10 years.”
FACT: According to CBO’s June 2009 estimate of the President’s Budget http://www.cbo.gov/ftpdocs/102xx/doc10296/06-16-AnalysisPresBudget_forWeb.pdf debt held by the public would rise from its 2008 level of $5.803 trillion to $17.126 trillion in 2019, which is 2.95 times larger than the 2008 level.
Assertion: “Will that new budget, like your old budget, triple the national debt and continue to take us down a path of increasing the cost of government to almost 25% of our economy?”
FACT: According to the President’s FY2010 budget (Table S-1) http://www.whitehouse.gov/omb/budget/fy2010/assets/summary.pdf debt held by the public is set to rise from $5.803 trillion in FY2008 to $16.027 trillion in FY2019, which is 2.76% times larger. Also, the President’s budget shows spending as a percentage of GDP at 24.4% for FY2010. CBO’s June 2009 estimate http://www.cbo.gov/ftpdocs/102xx/doc10296/06-16-AnalysisPresBudget_forWeb.pdf of the President’s budget also shows federal outlays at 24.5% of GDP in 2019.
UPDATE: “How did you arrive at the conclusion that what were the old annual deficits under Republicans have now become the monthly deficits under Democrats? And what is the back-up?”
In the 12 years that Republicans controlled the House, the average deficit was $104 billion (average of final deficit/surplus FY1996-FY2007 data taken from Table F-1 below). In just 3 years under Democrats, the average deficit is now almost $1.1 trillion (average of final deficit/surplus FY2008 and 2009 data taken from Table F-1; FY2010 data taken from Table 1-3). Source: CBO January 2010 Budget and Economic Outlook http://www.cbo.gov/ftpdocs/108xx/doc10871/Chapter1.shtml
It is time to stop the madness, stop the spending and lower taxes for businesses to stimulate the economy. We can not spend our way to prosperity. Keynesian Economics will not work now – they never have. The engine of the economy is private enterprise and free market economics. It is time to let them work.
By the way, we need more people like Jeb Hensarling in the Congress – honest, articulate conservatives with principles and values. As for the President – learn from history, listen to the your citizens and start telling the truth.
Restore the Republic, Reject the Agenda of the Progressive Left!