Lieberman Sounds Alarm on Fiscal Irresponsibility
Lieberman Sounds Alarm on Fiscal Irresponsibility
Senator warns of debt crisis and presses for new budgeting rules in speech
WASHINGTON -Senator Joe Lieberman (D-CT) today warned of the dangers of deficit spending and called for new honest accounting measures for the federal government in a speech to a Capitol Hill forum sponsored by the Wharton School of Business and the CATO Institute.
"We are creating a debt both perpetual and crushing that will leave today's children and their children with enormous interest payments, unmet public needs and a weakened American economy and nation," Lieberman said. "If you are worried about the recent oil price shocks to our economy, wait until the foreign debt shocks that will come if lending nations lose faith in the dollar because of our never-ending appetite for borrowed money."
According to estimates from former Reagan Administration economist Eugene Steuerle, by 2013, at current deficit spending rates, the federal government will have no discretionary funds available to pay for education, veteran's hospitals, law enforcement, environmental protection and other essential functions after it has paid interest on the debt and met current national defense and entitlement commitments. And according to the U.S. Comptroller's office, by 2040 all federal revenue will be needed to pay interest on the debt unless reforms are made.
To begin addressing this fiscal crisis, Lieberman has introduced the Honest Government Accountability Act, which would require the federal government to adopt "present value" accounting methods widely used in the private sector; stronger "pay-as-you-go" rules that would require all new spending increases or tax cuts to be paid for with either budget cuts or tax increases; and a ban on using reconciliation bills as a "back door" means of worsening deficits.
"Budget reform is the gateway challenge that must be met before we can actually get back to fiscal responsibility," Lieberman said. "The reforms that I have called for would force long-term financial planning and short-term restraint through honest accounting measures. Our domestic standard of living and international leadership depend on whether we meet this budget reform challenge."
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