Republican Congressman David Schweikert of Arizona is warning about a potential US insolvency as the federal debt balloons.
In a new letter, Joint Economic Committee (JEC) Chairman Schweikert says that the rising debt-to-GDP ratio is a massive threat to the country’s economic security.
Says Schweikert,
“The rapid expansion of public debt as a share of the economy represents a pressing risk for the United States. Growing deficits erode investor confidence, crowd out private and public investment, and push up borrowing costs, weakening economic growth. A range of economic forecasters project long-run real GDP growth between only 1.8 and 2%.”
The letter, sent to the US House Budget Committee as required by law, makes recommendations to address the major issue.
Says Schweikert,
“The nation continues to navigate a precarious path toward fiscal insolvency, demanding urgent action to avoid catastrophic consequences. While recent efforts in Congress have averted drastic tax increases, streamlined investment incentives, and endeavored to cut inefficiencies in Federal spending, more must be done to remain aligned with the goals of the Employment Act of 1946.
Congress should prioritize policies that facilitate high-skilled immigration, strategically promote technological innovation, work to build a healthier population, and enable economic expansion as solutions to America’s pressing challenges.”
The nation’s debt skyrocketed by more than $535.4 billion in just six weeks, increasing from $36.998 trillion on August 8th to $37.533 trillion on September 15th.
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