The federal government continues to spend more than it takes in and continues to implement policies that do nothing to create positive economic opportunities in the long term. For the month of July, the U.S. deficit grew by $181 billion! Because of the recession, tax revenues have significantly decreased from households as well as corporations. This sums it up:
Sen. Judd Gregg (N.H.), the top Republican on the Budget Committee, said that Democrats in Congress aren’t doing anything to address the record deficit and are instead pushing ahead with “wildly expensive” healthcare legislation.
“To allow the deficit to hit these previously unthinkable levels – while still planning to implement massive new spending programs – shows an incredible lack of fiscal responsibility, especially toward the future generations who will be saddled with the consequences of today’s actions,” Gregg said.
It’s gotten to a point that Treasury Secretary Tim Geithner is asking Congress to up the federal debt limit, currently set at $12.1 trillion:
Mr. Geithner, in a letter to U.S. lawmakers, said that the Treasury projects that the current debt limit could be reached as early mid-October. Increasing the limit is important to instilling confidence in global investors, Mr. Geithner said.
October, he says! That’s only a few months away. It’s astounding.
