Page 46 - ATR 2 2013

THE LaST word

Searching for Spending

Solutions

by u.s. congressman nation’s annual interest expense has non-binding budget resolutions should
rick crawford (r-ark.) actually declined by 20 percent. He also eliminate all questions. Consider that
Guest Writer pointed out that if the Fed paused its over the past three decades, our nation’s
money-printing operation and inter- debt has skyrocketed from $908 billion,
A catastrophic fiscal storm is gath- est rates returned to the historically or 33 percent of the economy, to more
ering strength and will soon wreck low 2008 level, annual interest on the than $16 trillion, or 103 percent of the
immense havoc on defense, homeland national debt would exceed $500 billion. total US economy.
security, transportation and other By far, the largest driver of the Did Congress’s “solutions” to
areas of federal spending unless major national debt and future deficits is restrict spending through budget con-
changes are implemented in short order. entitlement spending, which over the trol acts and non-binding budget reso-
Transportation infrastructure could be past 15 years has grown from 25 per- lutions, which purportedly do the same
hit especially hard as the possibility of cent of federal spending to roughly 57 except without the effect of law, work?
high interest rates and declining rev- percent in 2012. Over the same period, Clearly not. And the last time there was
enue becomes more likely due to fiscal all other spending categories have a brief period of non-deficit spending
irresponsibility in Washington. decreased sharply. The Congressional (only on a non-GAAP basis), Congress
Most of everyone knows the U.S. Budget Office notes that within 13 wasted no time going on an entitle-
debt has skyrocketed 60 percent over years entitlement spending and interest ment-expansion binge, creating $30
the past four years from $10 trillion will exceed ALL federal revenue. And trillion in new unfunded entitlement
to more than $16 trillion. However, this assumes interest rates don’t spike! spending between 2000 and 2010.
less know is the bigger picture. David Declining budgets coupled with Infrastructure spending is critical
Walker, former comptroller general the likelihood of higher interest rates to our nation’s economy and road to
under Presidents Clinton and Bush, will make repairing crumbling infra- recovery. But I fear it and many other
notes that our nation’s total financial structure much more difficult. I wish important areas of investment will
hole is over $71 trillion. I could say there is an easy solution in be decimated if we do not address the
He explains that taxes would likely the works but Congress seems unwilling root cause of the growing debt crisis.
have to double or triple to keep things to deal with the structural problem that Absent permanent spending controls, I
from spinning completely out of con- fosters its deficit-spending and entitle- don’t see how we keep Congress from
trol. But as troubling as his calculations ment-creating addictions. We simply expanding entitlements further and
are, they do not assume the predictable need more representatives and senators sparking an interest-rate driven debt
adverse reaction that normally occurs willing to fight for permanent spending spiral.
in the bond market (i.e. rapidly raising controls.
interest rates). Some question the need for Congressman Rick Crawford (R-Ark.)
Stan Druckenmiller, a prominent a Constitutional balanced budget represents Arkansas’s First Congressional
District in the u.S. House of
macroeconomic investor, recently noted amendment or limiting spending as a Representatives. Crawford serves on the
on CNBC that while U.S. debt has risen percentage of GDP. However, the obvi- Agriculture and the Transportation and
60 percent over the past four years, the ous failure of budget control acts and Infrastructure Committees.

46 arkansas Trucking rePorT | issue 2 2013