Thursday, March 18, 2010

Rep. Paul Ryan: Obama’s New Budget Will ‘Literally Crash the U.S. Economy’

Rep. Paul Ryan (R.-Wis.), the ranking member of the House Budget Committee, told that the new fiscal year 2011 budget proposed by President Barack Obama will “literally crash the U.S. economy” with the additional debt it plans for the federal government.

“They literally crash the U.S. economy, if these kinds of deficits that he’s proposing persist,” Ryan said, referring to the fact that the Congressional Budget Office has reported that the president's 2011 budget proposal would nearly triple the publicly held portion of the federal debt over the next ten years.

Ryan pointed out that the Government Accountability Office recently reported that the federal government already faces a “fiscal gap” of $76 trillion, meaning that over the next 75 years the cost of the benefits promised in federal entitlement programs exceeds the tax revenues expected to pay for those benefits by that amount. That works out to almost $250,000 for every single American and about $650,000 for every American household.

The new debt President Obama plans for the federal government to incur over the next decade would come on top of this existing $76 trillion "fiscal gap."

“All those unfunded liabilities, all that debt I’ve been telling you about, is before you pass this budget,” said Ryan. “That’s if we don’t pass the budget. If we pass the Obama budget, it just gets worse. He doubles the debt in 5 years and triples it in 10.”