May 9, 2023, Fairfax, Va.—Americans for Limited Government President Rick Manning today issued the following statement urging the Senate to pass the Limit, Save, Grow Act:
“With inflation still elevated, regardless of tomorrow’s Bureau of Labor Statistics report, with the Federal Reserve having recently increased interest rates again, it is safe to say that interest costs on the $31.4 trillion national debt will continue to mount. Since government spending in recent years has been one of the primary drivers for too much money flooding the system, coming at a time of economic lockdowns and production halts from Covid, it was chasing too few goods.
“Since Covid ended in 2021, interest rates on 10-year treasuries have increased from about 1.5 percent to 3.5 percent at a time when the U.S. has been accumulating trillions of dollars of new debt, which has increased by $8.5 trillion since Jan. 2020, $7.8 trillion of which is publicly tradeable debt. In the meantime, in the next year alone, $7.1 trillion, or about 29.1 percent of the $24.6 trillion publicly tradeable debt will be coming due, according to the latest data from the U.S. Treasury.
“That is why the House Republican-offered Limit, Save, Grow Act is a reasonable approach to begin getting our spending under control. Over the next 10 years, interest owed on the debt alone will total more than $10 trillion, according to the White House Office of Management and Budget. The House plan would shave just $547 billion off of that, according to the Congressional Budget Office, in addition to another $4.3 trillion of real spending cuts. Consider that, $4.3 trillion of cuts only gets you $547 billion less debt service. This is why Limit, Save, Grow is just the first step in getting our fiscal house in order. It also why the Grow portion of Limit, Save, Grow is essential, because aggressive economic growth is the only way out the massive debt abyss that threatens to engulf us.”
For media availability contact Americans for Limited Government at media@limitgov.org.
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