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Public Statements

Issue Position: Federal Budget

Issue Position

Location: Unknown

I am a Fiscal Conservative Democrat. I believe that the Federal Government ought to Balance its Budget. The Federal Government also needs to establish federal Budget Surpluses and use them to pay down the $5 trillion National Debt over the next 10 to 12 years.

Unfortunately, my opponent Steven LaTourette believes that we should not have Federal Budget Surpluses and use them to pay off the National Debt. In fact, he believes that the Federal Government should run Federal Budget Deficits. You can find evidence of his beliefs in his voting record over the past 10 years, especially in his support of President Bush's 2001 irresponsible tax cut .

Republicans are always accusing the Democrats of being large spenders. Well, the truth is the Republicans spend much more than Democrats, espcially the Bush Administration.

For example, during the Reagan and Bush Administrations [1981- 1993] the average annual percentage increase in Federal sending was much higher than the average annual percentage increase in spending was during the Clinton Administration [1993-2001]. In fact, the Clinton 4 years of surpluses [1998-2001] offset all of deficits of his first 4 years [1994-1997] which means that Clinton virtually added nothing to the National Debt during his eight years.

George W. Bush in first 7 years has been a total fiscal disaster. He and the republican Congress, including Steve LaTourette, borrowed nearly $1.7 trillion over the last 6 years. They have presented this country with its 4 largest deficits in the past in history.

In addition, the Federal Budget for the last Fiscal year [October 1, 2006 -- September 30, 2007] exceeded $2.8 trillion [$2,800,000,000,000]. Republican President George W. Bush has requested the 4 largest one-year increase in Federal Government Spending in American History.

My point is this, no matter which party has in power, Federal spending has continued to grow and will continue to grow. But the difference between the parties however is that the Democrat Party clearly exerts more Fiscal Discipline and is more Fiscally Conservative than is the Republican Party. Democrats are more willing to fund Federal Spending through Taxation than Republicans are. Republicans are more willing to fund Federal Spending through Borrowing than Democrats are.

Republicans support Federal Borrowing because of the way that they define Freedom. They define Freedom in terms of how much the individual does for him or herself. They feel that taxation reduces the amount that the individual is able to do him or herself. Therefore, in the name of Freedom, Republicans support lower taxes even if the lower taxes result in Federal Budget Deficits that result in Federal Borrowing.
But Federal Budget Deficits and Federal Borrowing are bad for the U.S. Economy. They lead to Higher Taxes in the long run and are Immoral.

Federal Budget Deficits and Federal Borrowing are bad for the U.S. Economy because when the Government borrows money, it crowds out others from obtaining such funds. One group of other borrowers is consumers. If the Government did not borrow so much money, there would be more funds available for consumers at lower interest rates allowing us to purchase more existing homes and build more new homes. Consumers would spend a smaller amount their income on monthly home payments due to lower home mortgage interest rates. This would provide consumers more funds to purchase other products. This also would provide consumers more funds at lower financing cost for the purchase of more cars and more other high-ticket products.

But most importantly, Federal Budget Deficits and Federal Borrowing reduces capital formation and crowds out businesses from access to Gross Savings and Investments. If the Government did not borrow so much, Entrepreneurs would use much of these funds to invest in more plant and equipment, research and development, employee training, and technology. These are the types of investment that increase our nation's productivity. Increases in productivity leads to real increases in the incomes of Americans and in our nation's overall wealth. Thus, Federal Budget Deficits and Federal Borrowing are bad for our nation's economy and Balanced Budgets and Federal Budget Surpluses are good for the American Economy.

In addition, Federal Budget Deficits and Federal Borrowing lead to Higher long-term Taxes. We spend over $200 Billion per year paying the interest on the National Dept. Nearly all of the National Debt was created during the Reagan and Bush Administrations. Had these Republican Administrations exercised fiscal discipline during the 1980's and early 1990's we could reduce taxes today by $200 billion per year. And you can bet that if we run federal budget deficits over the next 12 years like we did during the 12 years of the Reagan and Bush Administrations, we will have to raise taxes by $200 per year in the future.

Finally, Federal Budget Deficits and Federal Borrowing are Immoral. When Americans allow the Federal Government to borrow hundreds of billions of dollars year after year after year, we push the debt on to the shoulders of our children and grandchildren. We receive the benefits while future generations pay the cost and suffer the consequences. This is stealing. This is fraud. This is disgraceful. But, I believe that we are better people than that, and the American people would resist Federal Budget Deficits and Federal Borrowing if they were educated to what Federal Budget Deficits and Federal Borrowing mean.

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