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Washington, D.C. – Ben Bernanke’s most recent address to lawmakers falls in line with what most fiscal conservatives have been saying for quite some time: the rate of government borrowing is out of control and must be reversed for the sake of long-term sustainability of financial markets. Fiscal irresponsibility on the part of the federal government has led to the largest deficits in the nation’s history. If we don’t begin to curb our national debt now, the consequences will continue to accumulate.
By year's end the rising deficit is expected to hit $1.85 trillion, just shy of 13 percent of the nation’s economy. The Fed Chairman sees the growing shortfall as a growing concern that must be met head on as it seeks to further threaten an already turbulent financial system. Although credit markets have shown resiliency in recent weeks, the financial industry remains mired in a lingering crunch that will only be prolonged should the government continue to borrow at its current rate.
FreedomWorks has consistently warned of the dangers of the fiscal imbalance that continues to mount. At the rate we are at, financial instability will not only result in a prolonged recession, but will also stifle any hope of economic growth for the foreseeable future.
FreedomWorks President Matt Kibbe observed:
“The choice is clear: raise taxes or slash spending. That is the choice facing our federal government at the current time. To avoid stagflation some tough decisions need to be made. This mess of spending fast and spending now only adds more pressure to an ever increasing bubble. Inevitably that bubble will burst given our current ways. We are digging a hole to nowhere.”
“Government needs to be rolled back. President Obama has promised to halve the deficit by his term’s end. Taxpaying Americans should not have to suffer in the process.”