Reckless levels of spending in Washington have been occurring for far too long. According to the Congressional Budget Office (CBO), the size of government has grown by more than 100 percent in the last decade. To put this in perspective, the federal government spends more than $10,280 per person, over $3,000 more per individual than what we were spending in 2001.
The fiscal crisis we face as a nation needs to be taken seriously, and addressed with immediate action.
The unsustainable levels of debt come shortly after four years of deficits of more than $1 trillion. According to CBO, the budget deficit this year will be $560 billion. Meanwhile, the federal debt held by the public is 73 percent of the gross domestic product (GDP). If spending continues at the current rate, CBO projects this will reach 100 percent of GDP by 2038.
The three largest drivers of spending, not including interest payments, are Medicare, Social Security and Medicaid. The combined outlays for these programs have nearly doubled in the past forty years. Medicare and Medicaid alone have grown to such level that after adjusting for inflation, the amount spent on these two programs is more than the entire federal budget in 1960. With the aging population of baby-boomers and the expansion of Medicaid under Obamacare, all three of these programs will continue to grow.
Making matters worse, we continue to send foreign aid to our enemies abroad rather than prioritizing spending here at home. Of all worldwide money expended on militaries and national defense, the United States spends roughly 43 percent of the $1.7 trillion spent in aggregate. To put this into perspective, U.S. spending amounts to nearly 9 times what is spent in the entire Middle East; 6 times that of China; and 12 times what is spent in Russia.
We have seen currencies and countries fall under their unsustainable debt. While our national debt continues to grow, investors will become uncertain of the government's willingness or ability to pay U.S. debt obligation. It is time that we get our fiscal house in order to prevent potential catastrophe and keep this outrageous national debt from falling on our children and grandchildren.
The solution to the government's fiscal crisis must begin by cutting spending in all areas, particularly in those areas that can be better run at the state or local level. Every year since being in the Senate, I've introduced a comprehensive budget that balances within 5 years. The purpose is not only to show that it can be done, but it also demonstrates that when the size of government is reduced through reform, resources can be more efficiently prioritized without relying on tax increases. [To read my FY14 budget, CLICK HERE.]
Forty six states across the nation have enacted Balanced Budget Amendments (BBA) in their state constitutions. I have long been a proponent of adopting the same principle for the federal government. As I serve the Commonwealth of Kentucky in the United States Senate, I will remain committed to working with my colleagues to provide common sense solutions that will solve our nation's fiscal crisis.
Read my budget online by clicking HERE or below.
Below is my bill to cut the federal budget by $500 billion in 2011.
Below is an overview of my proposal to cut $500 billion in federal spending.