These are the personal views of Peter Morici, a professor at the University of Maryland’s Robert H. Smith School of Business and former chief economist at the U.S. International Trade Commission:
To raise the debt ceiling, moderate Democrats and Republicans in Congress may compel President Barack Obama to significantly cut spending. Done right, that would be a good thing!
Americans don’t need higher taxes–they need a government that spends within the nation’s means. That begins with acknowledging the facts and acting on them.
In 2007, the last year before the financial crisis, the deficit was a manageable $161 billion. The Bush tax cuts were in place, and wars in Iraq and Afghanistan were at full tilt. President Obama should stop blaming those for the fiscal mess.
Over the next four years, Congress, with plenty of White House participation, permanently increased spending by $1.1 trillion and added another $350 billion in tax breaks.
Viola! The deficit jumped to $1.6 trillion.