Chairman Jeb Hensarling

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Obama Treasury Secretary: ‘We are overachieving on deficit reduction’
Posted by on May 23, 2013
During the first term of the Obama administration, our nation racked up four straight years of trillion dollar-plus deficits and as much debt as was accumulated in our first 200 years. Under President Obama, our national debt has increased by more than $6 trillion – the largest increase under any president in history.

But according to President Obama's Treasury Secretary, Jack Lew, it’s time to pop open the champagne and celebrate because “we are overachieving on deficit reduction right now".

That’s funny, because it wasn’t that long ago when a $642 billion budget deficit and a $17 trillion national debt was a bad thing.

Watch Secretary Lew's take on this year's deficit in an exchange with Congressman Marlin Stutzman during yesterday's hearing below:

 

So what does “overachieving” look like to the Obama administration? Just this month, the Congressional Budget Office updated its budget outlook (.pdf) with the following deficit and debt estimates:


This year’s budget deficit = $642 billion

In 2023, the budget deficit = $895 billion

Total deficits over the next decade = $6.34 trillion

Gross federal debt in 2023 = $25.2 trillion


In his testimony (.pdf) earlier this year to the House Budget Committee, CBO Director Doug Elmendorf said:


“Federal debt held by the public is projected to remain historically high relative to the size of the economy for the next decade…Such high and rising debt would have serious negative consequences…such a large debt would increase the risk of a fiscal crisis…”


As Secretary Lew himself pointed out in his exchange with Congressman Stutzman, “the path we are on is what is most significant.”

We agree, Mr. Secretary. But here's the path (.pdf) we are on.

If the Obama administration wants to give themselves high-fives and hand out gold stars for “overachieving” with a deficit that is $642 billion – the fifth biggest deficit in history – and headed higher because of their spending policies, then be our guest.

It just shows how out of touch they are with hardworking taxpayers who understand that unless we change course Washington’s reckless spending will leave their children and grandchildren with fewer opportunities, a lower standard of living and less freedom.
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