U.S. Economy Heading Toward Cliff at Breakneck Speed
Congressman and Former U.S. Comptroller Share Alarming Statistics of U.S. Economy With Contentious Crowd During Town Hall Meeting on Federal Budget
The U.S. economy is heading toward an economic cliff at breakneck speed and the most predictable crisis imaginable, the former top governmental auditor told a raucous crowd on Thursday evening during a "Town Hall" meeting on the economy convened by Congressman Jim Himes.
Once free of foreign debt, the United States is now the top debtor in the world economy and Connecticut has the highest debt per person in the United States, David M. Walker, U.S. Comptroller General and head of the Government Accountability Office from 1998 to 2008, told a crowd of about 150 mostly white-haired listeners at Fairfield Ludlowe High School.
Walker presented one doomsday statistic after another based on official government records during a slide presentation as Himes' guest in the school auditorium.
"What you're about to hear from David is scary and uncomfortable," Himes had forewarned the audience.
The biggest drags on the economy, Walker and Himes agreed, are Social Security, Medicare and Medicaid - the so-called entitlement programs - which suck two-thirds of federal revenues, leaving Congress to create its discretionary budget with the remaining third.
"Without reforms, by 2022, future revenues will only cover Social Security, Medicare and Medicaid and interest on the debt," Walker said. "By 2046, revenues won't even cover the interest costs."
The outlook is especially bleak, Walker said, because baby boomers are entering retirement and their health care costs will climb as they live out longer lives. "Demographics are destiny," he said.
The foreign debt alone has grown from $5.6 trillion in 2000 to $13.2 trillion today, Walker said. "We're 10 years away from being Greece," he predicted.
Walker's remarks were greeted by a silent audience, but when Himes assumed the podium, hecklers called out repeatedly to interrupt him.
"You don't represent us!" called someone from the audience.
Fairfield First Selectman Ken Flatto had to break in several times to restore decorum.
Himes said his purpose in convening the public session was to hear from constituents, but time was short and not everyone could be heard.
"Himes invited me to tell him what I would cut from the budget, but I didn't get to say what I would cut," complained Rob Birarelli afterward.
"The first priority should be to cut out the Department of Energy," Birarelli said on the high school steps, wearing a button with Himes' picture and a line running diagonally across it. "We were 40 percent dependent on foreign oil when Jimmy Carter created the Department of Energy and now we're 60 percent foreign oil dependent."
"The Department of Energy just spends money," Birarelli added. "Let the private sector take over."
When Himes brought up the subject of the vote coming up in Congress on whether to extend Bush-era tax cuts, he was soundly booed when he said tax cuts do not increase revenue.
After telling the audience that tough, honest choices have to be made, he announced he favored an emergency bill to extend aid to teachers to avoid major layoffs.
He noted later the funds would not be borrowed but made available through closing a tax loophole.
Himes said he had voted to appropriate funds for continuing military operations in Afghanistan, although he has "lost faith that we can rebuild Afghanistan."
"We have to support our troops that are there and we need to project force in the region," he said.
Himes was an architect of the derivatives portion of the recent Dodd-Franks economic reform bill, a bill that was criticized by Rob Merkle, a Republican candidate facing a primary on Tuesday to oppose Himes in November.
"The bill was window-dressing," said Merkle, who greeted audience members leaving the meeting. "They didn't address any of the systemic risks they're talking about."
"Congress should have limited our exposure to losses of Fannie and Freddie Mac and taken steps to reduce their presence in the mortgage market," Merkle added.
Merkle said he opposed allowing the Bush tax cuts to expire.
"Residents of the 17 towns in the 4th Congressional District will face $1.5 billion in added federal income taxes," said Merkle, who has a background in small business. "That will have a dramatically detrimental effect on our economy, taxes."
During the Town Meeting, Himes fended off critics of Obama Administration policies as audience members called out "Join the Tea Party caucus!"
As the evening ended, Himes took pains to tell the crowd he appreciated "every one of you being here."
Eric Cameron
2:11 pm on Friday, August 6, 2010
The U.S. IS headed toward a cliff at breakneck speed with Obama driving the bus and Pelosi and her crew INCLUDING JIM HIMES riding shotgun. Himes going around town warning of the dangers of Government spending is like Lindsay Lohan going around warning about the dangers of drinking while driving and of drug use. Too bad Himes did not speak with Mr. Walker before he voted for the Healthcare bill, Cap and Tax, Govt bailouts, etc etc. Then again, we all did try to talk to him for the past year without any success. All this talk about fiscal conservativism couldn't have anything to do with the fact that there is an election coming up could it?? See you in November Jim.
William M. Burke
3:44 pm on Friday, August 6, 2010
Actually he has been in Fairfield quite a bit during his term, for example:
http://blog.ctnews.com/kantrowitz/2010/04/15/congressman-jim-himes-hosts-fairfield-beach-clean-up/
http://himes.house.gov/index.cfm?sectionid=22.42&itemid=103
http://heyfairfield.com/2009/04/27/congressman-jim-himes-says-thank-you-to-the-bank-of-fairfield/
http://himes.house.gov/index.cfm?sectionid=22&parentid=21§iontree=21,22&itemid=190
http://www.youtube.com/congressmanhimes
http://www.centurycouncil.org/content/congressman-himes-brings-ask-listen-learn-fairfield-woods-middle-school
As for the budget, Himes' Spending Cut Work Group Claims 1st Victory, Welcomes New Member Wash, DC – Congressman Jim Himes announced today that his Spending Cut and Deficit Reduction Working Group today achieved action on the first of its proposed federal spending cuts in the U.S. House, just one week after the group’s formation was officially announced. Last week the group unveiled a package of legislative measures designed to cut over $72 billion from the federal budget, and yesterday the House Financial Services Committee passed one of the group’s provisions as an amendment to the Housing Preservation and Tenant Protection Act of 2010 (H.R. 4846). For more info http://himes.house.gov/index.cfm?sectionid=22§iontree=21,22&itemid=547
William M. Burke
3:17 pm on Friday, August 6, 2010
Actually, Jim has come to Fairfield on a number of occasions during his term:
http://blog.ctnews.com/kantrowitz/2010/04/15/congressman-jim-himes-hosts-fairfield-beach-clean-up/
http://heyfairfield.com/2009/04/27/congressman-jim-himes-says-thank-you-to-the-bank-of-fairfield/
http://himes.house.gov/index.cfm?sectionid=22.42&itemid=103
http://thinkprogress.org/wp-content/uploads/2009/07/townhallactionmemo.pdf
http://www.ctpost.com/default/article/Himes-asks-Southport-community-for-feedback-on-313704.php
http://himes.house.gov/index.cfm?sectionid=109
http://www.americantowns.com/ct/bridgeport/news/congressman-jim-himes-is-freezin-for-a-reason-272559
As for the budget, he is a leader in Congress in looking for cuts in spending:
Himes' Spending Cut Work Group Claims 1st Victory, Welcomes New Member
Washington, DC – Congressman Jim Himes announced today that his Spending Cut and Deficit Reduction Working Group today achieved action on the first of its proposed federal spending cuts in the U.S. House, just one week after the group’s formation was officially announced. Last week the group unveiled a package of legislative measures designed to cut over $72 billion from the federal budget, and yesterday the House Financial Services Committee passed one of the group’s provisions as an amendment to the Housing Preservation and Tenant Protection Act of 2010 (H.R. 4846). For more info http://himes.house.gov/index.cfm?sectionid=22§iontree=21,22&itemid=547
ccdemuth
3:50 pm on Friday, August 6, 2010
According to the Wall Street Journal, Jim Himes’ January tax hikes will take a sizable bite out of middle-income families’ disposable incomes.
Connecticut is among the states that would save the most from extending the tax cuts at $1,903 for the average family. The fourth district of Connecticut will see its average family’s tax burden increased by $2,743.
We can’t afford Jim Himes and, regardless of what he says during a campaign, we can’t trust him to change.
David Kostek
5:19 pm on Friday, August 6, 2010
You do know the Bush tax cuts were set to expire in January 2011 when they were passed in 2001 and 2003, right? So 7 to 9 years ago, this became law. Yet you call it "Jim Himes' January Tax Hikes." That's a misrepresentation. It's not at all accurate and a transparent rhetorical tool. Secondly, Himes is on record supporting extension of those cuts for those earning under 250k and has not even ruled out extending them for high income earners (like you and me!).
The above article makes clear that the path ahead calls for reasoned, sober assessments and judgment. Himes exhibits that sort of thinking all the time.
Kevin
3:56 pm on Friday, August 6, 2010
Let's not cry for people making $250K and paying a fair share of taxes.
This was a private sector financial crisis caused by speculation and over-leverage in every phase of the American economy. To blame Obama/Himes ignores reality. Virtually every mainstream economic analysis shows the combination of Treasury efforts, the stimulus and Fed actions rescued us from a Great Depression 2.0. You think 9.5 percent unemployment is bad, what does to 15-20 percent look like? Thank goodness we have level-headed leaders who are making difficult and unpopular decisions without bowing to the ranting demagogues.
I am grateful for Himes leadership.
Eric Cameron
4:40 pm on Friday, August 6, 2010
Yep and as Jim Himes said specifically, Freddie and Fannie Mae had nothing to do with it. That was just media hype