Wednesday
May062009
Hoyer: Curtailing America’s Debt Is Not A Choice
Wednesday, May 6, 2009 at 10:02PM
By Jonathan Bronstein, Talk Radio News Service
House Majority Leader Steny Hoyer (D-Md.)
When financial giants Bear Stearns and AIG crashed, the American government came to their rescue to maintain stability of the economy. When “too big to fail” Freddie Mac and Fannie Mae did fail, the American government stepped in and prevented their demise.
However, “If a fiscal meltdown comes, there will be no one to bail out
America,” said House Majority Leader Steny Hoyer (D-Md.), adding that the U.S.’s lack of a responsible fiscal policy for the last 30 years has placed the nation in dire economic straits.
Hoyer spoke yesterday at the Bipartisan Policy Committee.
America’s 2009 budget is contending with a $1.7 trillion deficit, which will only inflate the national debt to $11 trillion. More than $3 trillion of that debt is held by foreign lenders, specifically China.
“Our debt has never been higher...(This) is our sad, debt-ridden fiscal state,” said Hoyer. As a result “hundreds of billions of dollars every year - hundreds of billions that could strengthen our national defense, or help young Americans go to college, or fund research for the next energy breakthrough - will instead go to interest payments, merely to keep us solvent.”
Hoyer stressed that Congress must take the lead and reform the nation’s economic policy in order to prevent such a devastating, demoralizing and dangerous event from ever occurring.
The first, and most important way to reshape America’s fiscal future is to reform the entitlement programs, such as Social Security Medicare and Medicaid.
“We will not bring our debt down if we do not reform entitlements,” Hoyer said, but cautioned that it will not be possible without bipartisan support. He cited Social Security reform in 1986, which was only possible because of a compromise between the Democratic Speaker of the House, Tip O’Neil, and President Ronald Reagan.
House Majority Leader Steny Hoyer (D-Md.)
When financial giants Bear Stearns and AIG crashed, the American government came to their rescue to maintain stability of the economy. When “too big to fail” Freddie Mac and Fannie Mae did fail, the American government stepped in and prevented their demise.
However, “If a fiscal meltdown comes, there will be no one to bail out
America,” said House Majority Leader Steny Hoyer (D-Md.), adding that the U.S.’s lack of a responsible fiscal policy for the last 30 years has placed the nation in dire economic straits.
Hoyer spoke yesterday at the Bipartisan Policy Committee.
America’s 2009 budget is contending with a $1.7 trillion deficit, which will only inflate the national debt to $11 trillion. More than $3 trillion of that debt is held by foreign lenders, specifically China.
“Our debt has never been higher...(This) is our sad, debt-ridden fiscal state,” said Hoyer. As a result “hundreds of billions of dollars every year - hundreds of billions that could strengthen our national defense, or help young Americans go to college, or fund research for the next energy breakthrough - will instead go to interest payments, merely to keep us solvent.”
Hoyer stressed that Congress must take the lead and reform the nation’s economic policy in order to prevent such a devastating, demoralizing and dangerous event from ever occurring.
The first, and most important way to reshape America’s fiscal future is to reform the entitlement programs, such as Social Security Medicare and Medicaid.
“We will not bring our debt down if we do not reform entitlements,” Hoyer said, but cautioned that it will not be possible without bipartisan support. He cited Social Security reform in 1986, which was only possible because of a compromise between the Democratic Speaker of the House, Tip O’Neil, and President Ronald Reagan.
Bipartisan Commission Tasked With Shaping Housing Recovery
By Adrianna McGinley
The Bipartisan Policy Center introduced a new Housing Commission led by former Cabinet members and senators that has been tasked with giving lawmakers policy suggestions for long-term housing wellness.
Former U.S. Senators Kit Bond, George Mitchell, and Mel Martinez; and Henry Cisneros, former HUD Secretary under President Clinton, will serve as co-chairs of the commission that was touted as an idea generator to solve the lingering housing issues plaguing the country.
Mitchell jokingly said the bipartisan commission “does not have the luxury” of proposing solutions that will not be able to pass in Congress. Instead, Mitchell said he had high hopes that his new team will be able to “assist those in office by demonstrating that it’s possible to come up with a meaningful, practical solution that is deliberately bipartisan in nature.”
One notion that members of the commission came to consensus on was that the revival of the housing market and job creation are linked and should both be considered when designing a path to recovery.
“I don’t think you can have a meaningful jobs recovery without improvement in the housing sector and I think the reverse is true as well,” Mitchell said.
Cisneros in addition emphasized the importance of addressing homelessness when debating housing policy.
“It’s an example of where we can’t allow other things to be eliminated because they involve real people and real pain,” Cisneros said.
He also acknowledged the role immigration reform could play in boosting the housing market saying he believes immigrant populations will provide the spark the housing market is looking for.
“I suspect that one of the really big surges in the market for housing going forward is going to be the immigrant population,” Cisneros said. “We’re blessed in this country to have that rich infusion of workers and talent and many of them completely believe in the American dream, their definition of the American dream is home ownership.”