Dems’ Spending and Borrowing Spree Will Bring “Massive” Economic Consequences and Fewer Jobs

May 7, 2012

FYI, a similar version of this release below went out to the following districts: Shelley Adler (NJ-03), Pete Aguilar (CA-31), Jeff Anderson (MN-08), George Badey (PA-07), Ron Barber (AZ-08), John Barrow (GA-12), Ami Bera (CA-07), Tim Bishop (NY-01), Kathy Boockvar (PA-08), Leonard Boswell (IA-03), Bruce Braley (IA-01), Cheri Bustos (IL-17), Lois Capps (CA-24), Ben Chandler (KY-06), Andrei Cherny (AZ-09), David Cicilline (RI-01), Tarryl Clark (MN-08), Gerry Connolly (VA-11), Jim Costa (CA-16), David Crooks (IN-08), John Delaney (MD-06), Val Demings (FL-10), Tammy Duckworth (IL-08), Bill Foster (IL-11), Lois Frankel (FL-22), Pete Gallego (TX-23), John Garamendi (CA-03), David Gill (IL-13), Alan Grayson (FL-09), Raul Grijalva (AZ-07), Pam Gulleson (ND-AL), Clark Hall (AR-01), Brad Harriman (IL-12), Jose Hernandez (CA-10), Brian Higgins (NY-26), Jim Himes (CT-04), Ruben Hinojosa (TX-15), Paul Hirschbiel (VA-02), Rush Holt (NJ-12), Steven Horsford (NV-04), Q. Byrum Hurst (AR-04), Steve Israel (NY-03), Bill Keating (MA-09), Ann Kirkpatrick (AZ-01), Larry Kissell (NC-08), Pat Kreitlow (WI-07), Ann McLane Kuster (NH-02), Rick Larsen (WA-02), David Loebsack (IA-02), Alan Lowenthal (CA-47), Nita Lowey (NY-17), Dan Maffei (NY-24), Larry Maggi (PA-18), Jim Matheson (UT-04), Carolyn McCarthy (NY-04), Gary McDowell (MI-01), Mike McIntyre (NC-07), Jerry McNerney (CA-09), Michael Michaud (ME-02), Joe Miklosi (CO-06), Brendan Mullen (IN-02), Patrick Murphy (FL-18), Mark Murphy (NY-11), Rick Nolan (MN-08), John Oceguera (NV-03), Bill Owens (NY-21), Sal Pace (CO-03), Frank Pallone (NJ-06), Ed Perlmutter (CO-07), Scott Peters (CA-52), Chellie Pingree (ME-01), Nick Rahall (WV-03), Ciro Rodriguez (TX-23), Raul Ruiz (CA-36), Lori Saldaña (CA-52), David Schapira (AZ-09), Brad Schneider (IL-10), Brandon Shaffer (CO-04), Carol Shea-Porter (NH-01), Kyrsten Sinema (AZ-09), Louise Slaughter (NY-25), Gene Stilp (PA-11), Betty Sutton (OH-16), Mark Takano (CA-41), John Tierney (MA-06), Paul Tonko (NY-20), Manan Trivedi (PA-06), Niki Tsongas (MA-03), Christie Vilsack (IA-04), Jamie Wall (WI-08), Tim Walz (MN-01), Charlie Wilson (OH-06), John Yarmuth (KY-03)

Matheson’s Spending and Borrowing Spree Will Bring “Massive” Economic Consequences and Fewer Jobs
New Study Shows Utah Democrat’s Failed Fiscal Policies Could Lead to Decades of Stunted Economic Growth

WASHINGTON — Even after Jim Matheson spent over $800 billion on his failed Democrat stimulus spending spree (Roll Call #70, 2/13/09), the economy continues to struggle with stagnant growth. Now new reports show that the unprecedented annual trillion dollar deficits President Obama and his Congressional Democrat allies like Matheson have presided over will likely result in decades of poor economic growth.

“After presiding over the most rapid debt increase in American history with their failed stimulus spending spree, President Obama and his Washington allies like Jim Matheson are leaving families and small businesses in Utah with the consequences,” said NRCC Communications Director Paul Lindsay. “If Matheson and Obama are allowed to continue their endless spending and borrowing, it will only hurt economic growth even further and put America on the path to decline.”

A new economist study shows that historically, countries with large debt loads see “massive” economic consequences:

“The U.S. and other developed economies with high public debt potentially face ‘massive’ losses of output lasting more than a decade, even if their interest rates remain low, according to new research by economists Carmen and Vincent Reinhart and Kenneth Rogoff.

“In a paper published today on the National Bureau of Economic Research’s website, they found that countries with debts exceeding 90 percent of the economy historically have experienced subpar economic growth for more than 20 years. That has left output at the end of the period a quarter below where it would have been otherwise.” (Rich Miller, “Reinharts, Rogoff See ‘Massive’ Output Losses From High Debt,” Bloomberg, 5/1/12)

The United States unfortunately falls squarely in this category:

“Gross federal U.S. debt has exceeded 90 percent of GDP for the last two years and is projected to remain above that level at least through 2017, according to the White House’s Office of Management and Budget.” (Rich Miller, “Reinharts, Rogoff See ‘Massive’ Output Losses From High Debt,” Bloomberg, 5/1/12)

President Obama has the dubious honor of presiding over “the most rapid increase in the debt under any U.S. president.” (Mark Knoller, “National debt has increased $4 trillion under Obama,” CBS News’ Political Hotsheet Blog, 8/22/11)

Dems’ Spending & Borrowing Spree Will Bring “Massive” Economic Consequences & Fewer Jobs http://ow.ly/aKxT4 #madeinwdc

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