Last month, the Congressional Budget Office (CBO) released its long-term budget outlook report, which showed our national debt increasing to 141% of GDP by the year 2046 and our economic outlook remaining at a nearly stagnant 2.1% on average over the next 30 years. This dismal report was compounded on Friday with a report by the Commerce Department showing our GDP grew at only 1.2% in the second quarter of this year, dipping far below initial forecasts.
The bleak Commerce Department report cites the main issues being a large drop-off in business investment, which declined by 6% from the first quarter of this year, as well as government investment declining 0.9% with the largest cuts being to federal defense spending and investments by state and local governments. Unquestionably, we must renew our efforts to allow our most dynamic job creators – our small businesses – to prosper and grow. Overregulation and irresponsible spending on broken programs have been the catalysts for these anemic economic reports, and the time to take action and reverse the course for our children and grandchildren is now.
We must continue to focus on policies that address the need for more jobs and more growth, including mitigating the harmful impacts of government overregulation. Our increasing deficits and irresponsible spending must be put to a stop before it is too late. In the House, we have taken some positive steps in recent years to cut spending and reform unsustainable government programs. For example, the deficit has markedly decreased in each of the last five years, with the most recent deficit level coming in at nearly a trillion less than the 2009 deficit. We actually cut government spending for two straight years for the first time since the 1950’s. If you compare actual spending levels to the spending projections that President Obama estimated back in 2009 based on his policies, we have spent $2.5 trillion less than what he intended to spend. However, we must take further action to rein in the programs that represent trillions of dollars in unfunded liabilities for future generations – as these burdens have put our country on an unsustainable path if we do not act.
Though there are some troubling findings in the recent CBO and Commerce Department’s reports, they should be viewed as a renewed call to promote policies to deliver a brighter future for our future generations. I am confident the combination of growth and responsible reforms will steer our country away from this dangerous path we are on and place our great nation on a path to opportunity, prosperity, and success for all.
If you need any additional information or if we may be of assistance to you, please visit my website at hurt.house.gov or call my Washington office: (202) 225-4711, Charlottesville office: (434) 973-9631, Danville office: (434) 791-2596, or Farmville office: (434) 395-0120.
Robert Hurt represents the Fifth District of Virginia in Congress.
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