Last week, economists testifying before the House Ways and Means Committee on the impact of unprecedented debts and deficits on job creation and the economy, provided food for thought to Constitutionally-minded citizens. During the hearing, several economists documented the need for Congress to make immediate spending cuts and to address the underlying causes of the deficits.
Dr. Andrew Biggs of the American Enterprise Institute cited historical data and a large body of research that indicates efforts to address rising debts by cutting spending “are far more likely to reduce debt and enhance the economy than raising taxes on American families and job creators.”
Stanford University Professor Dr. Edward P. Lazear explained that escalating debt signals higher taxes and creates job-crushing economic uncertainty. Dr. Veronique de Rugy of the Mercatus Center at George Mason University explained:
- Spending and its symptoms (debt and deficit) often signal to consumers, businesses and investors that taxes are likely to go up.
- This prospect of increased taxes tends to inject a significant amount of uncertainty into the economy and weakens confidence.
- That uncertainty means that investors don’t invest; employers don’t hire; and consumers save, rather than spend, money.
- People can’t find jobs; unemployment grows.
- This, in turn, hurts an already sluggish economy and has a negative impact on job creation.
1789 Blog and Opinion: Top Picks
Voting No On Debt Limit Would Help Return to Constitutional Limits
Shutdown 101: A Slowdown, Not a Shutdown
Truth and Lies of a Government ‘Shutdown’
Obamacare Unconstitutional Payoffs: Over $1.7 Billion Already
Social Security is Adding to the Debt Now
Immigration Corruption and Criminal Aliens Are Destroying U.S.
Obama Judicial Nominee: Supports “Constitutional Welfare Rights”
Florida Judge: Sharia Law To Decide Mosque Arbitration Case
Utah Makes Gold and Silver Legal Tender
No Constitutional Guarantee of a “Free” Taxpayer-Funded Education
The “Constitutionally Correct” Award
Hon. Denise Page Hood
In a notable victory for 1st Amendment free speech, U.S. District Court Judge Denise Page Hood has ruled that Detroit’s SMART bus system must allow bus ads (below) with a message offering help to people who wish to leave Islam safely, without having to live in fear. Detroit refused to run the ads on the Dearborn and Detroit buses in the spring of 2010. In May the American Freedom Defense Initiative sued the city of Detroit for refusing the ads, which are identical to ads used in Miami, New York City and San Francisco. But Detroit caved to pressure from Islamic activists. This violated Detroit’s own ad guidelines which are intended to protect the Constitutional right to freedom of speech.
The “Constitutionally Incorrect” Award
U.S. Sen. Frank Lautenberg
Speaking at a Pro-Planned Parenthood rally, where your tax dollars were wasted to ask the government for more taxpayer money, Senator Lautenberg got a little carried away in his moment of glory. He told the protesters that
“…The Republicans in Congress claim they’re concerned about the budget balance, but it’s a disguise! It’s not true! It’s a lie! That’s not what they want. They want — they want other people not to be able to have their own opinions. They don’t deserve the freedoms that are in the Constitution! But we’ll give it to them anyway.”
Stories to Watch
Congress has limited itself to a certain amount of national debt, called the statutory debt limit, which they raise whenever necessary or convenient. All the Republicans in the Senate have signed onto a Constitutional Balanced Budget Amendment, saying they will force a vote on that amendment before voting on raising the debt limit. Some conservatives are refusing to raise the limit at all.