Eagle Forum Legislative Alerts

Monday, October 03, 2011

Debt Ceiling Up, S&P Rating Down

Do you remember how we were threatened that if the Republican House of Representatives didn't raise the U.S. debt ceiling, the stock market would crash and Standard & Poor's would punish us by downgrading our credit rating? Well, the Republicans did what Wall Street, President Obama and the media demanded. Then the stock market nose-dived anyway and S&P reduced our financial rating for the first time in history from Triple-A to second-place. The problem isn't the debt ceiling but out-of-control spending, and the bipartisan deal made it worse. It increased the government's borrowing limit by nearly a trillion dollars but cut less than $2 trillion in spending over the next ten years, which hardly makes a dent in the problem.

Taxpayer grants to college students are exempted from the spending cuts, and Obama even got authority to increase grants to college students by $17 billion. Colleges reacted by raising this fall's tuition prices an average of nearly 10%, and some colleges increased tuition as much as 20%. If there is anything Congress should not do, it's borrow more money to send more kids to college who then can't get jobs that are worth the price of college. That's just a sneaky way of concealing the true unemployment figures of young people.

We should reduce federal spending back to the level of the day Obama took office; most people don't realize how much he increased spending in his first two years. We can furlough all the non-essential federal employees; those are the ones who are told not to report to work when Washington, DC has a snow day. The promise to vote on a Balanced Budget Amendment really just elevates symbolism over reality. Even if that constitutional amendment passed the House, we all know it won't pass the Senate. The way to balance the budget is to refuse to raise the debt ceiling any more.

Listen to the radio commentary here:

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