red states rule
12-05-2012, 03:13 AM
Another warning that Obama, Dems, and the liberal media will ignore as the nation steams full speed ahead to bankruptcy
The Government Accountability Office warned in a report Monday that if cuts are not made to mandatory spending — including Social Security and Medicare — there will be a fundamental gap between spending and revenue as more baby boomers retire.
“Significant actions to change the long-term fiscal path must be taken,” the GAO warned (http://www.gao.gov/products/GAO-13-148SP).
The report was released amid heated debates between the president and congressional Republicans trying to hammer out a deal over taxes and spending. If no deal is reached, taxes go up and major spending is cut.
The GAO warned that discretionary spending is not the crux of the problem. “Discretionary spending limits [which includes defense spending] alone do not address the fundamental imbalance between estimated revenue and spending, which is driven largely by the aging of the population and rising healthhttp://images.intellitxt.com/ast/adTypes/icon1.png (http://dailycaller.com/2012/12/03/gao-report-us-on-unsustainable-long-term-fiscal-path/#) care costs.”
While allowing the drastic fiscal tightening to occur will probably result in a disruption in economic growth, avoiding the cliff ”would lead to higher debt over the long term.”
“[T]he whole notion that federal cuts is going to push us into recession is nonsense,” Cato Institute budget policy expert Tad Dehaven told The Daily Caller News Foundation. “All that money that the federal government spends was taken or borrowed out of the economy to begin with.”
“I think the focus should be on long term growth and that’s getting the federal spending under control,” Dehaven added.
Read more: http://dailycaller.com/2012/12/03/gao-report-us-on-unsustainable-long-term-fiscal-path/#ixzz2EDpzoQCM
The Government Accountability Office warned in a report Monday that if cuts are not made to mandatory spending — including Social Security and Medicare — there will be a fundamental gap between spending and revenue as more baby boomers retire.
“Significant actions to change the long-term fiscal path must be taken,” the GAO warned (http://www.gao.gov/products/GAO-13-148SP).
The report was released amid heated debates between the president and congressional Republicans trying to hammer out a deal over taxes and spending. If no deal is reached, taxes go up and major spending is cut.
The GAO warned that discretionary spending is not the crux of the problem. “Discretionary spending limits [which includes defense spending] alone do not address the fundamental imbalance between estimated revenue and spending, which is driven largely by the aging of the population and rising healthhttp://images.intellitxt.com/ast/adTypes/icon1.png (http://dailycaller.com/2012/12/03/gao-report-us-on-unsustainable-long-term-fiscal-path/#) care costs.”
While allowing the drastic fiscal tightening to occur will probably result in a disruption in economic growth, avoiding the cliff ”would lead to higher debt over the long term.”
“[T]he whole notion that federal cuts is going to push us into recession is nonsense,” Cato Institute budget policy expert Tad Dehaven told The Daily Caller News Foundation. “All that money that the federal government spends was taken or borrowed out of the economy to begin with.”
“I think the focus should be on long term growth and that’s getting the federal spending under control,” Dehaven added.
Read more: http://dailycaller.com/2012/12/03/gao-report-us-on-unsustainable-long-term-fiscal-path/#ixzz2EDpzoQCM