Repealing Budget ary Caps Will Leave a Heavy Burden on Our Children
(Washington DC) – Amidst a budget battle, President Obama and some members of Congress want to end the spending caps instituted by the Budget Control Act of 2011 (BCA). The act, which has slowed the growth of government spending arguably more effectively than any Budget tool, has also caused outlays to fall from $3.603 trillion in 2011 to $3.506 trillion in 2014. During a recovery that has been slower than many had hoped for, the BCA is likely one of the policies that has contributed to the economy picking up, as less government spending is directly correlated to private-sector growth. Thus, a sensible approach is to work within the caps and shift Budget spending, rather than increase our national loans.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
“To claim that we are in a period of “mindless austerity”, as the president did when he proposed his Budget back in February, is to blatantly ignore an $18 trillion national Debt and unprecedented increases in the money Supply resulting from several rounds of quantitative easing ordered by the Federal Reserve in the last six years of the Obama Administration. The president and others in Washington continuously choose to disregard basic economics and push for higher spending that eventually falls on the shoulders of Americans to pay.
The approach of this administration has been to borrow money instead of cutting expenditures. It is a path fraught with peril; that’s because the costs will fall on the next generation, who are already saddled with the impossible burden of paying for unsustainable levels of entitlement programs.
Sticking to spending caps and maintaining an appropriate Budget are also linked to economic development, which can and bolster growth for corporations and individuals alike. Lawmakers should work within reasonable spending constraints, just as the American people do with their own family Budget s.”