On Monday, House Speaker Kevin McCarthy (R-CA) gave a speech discussing the U.S. debt crisis and outlined an approach to helping alleviate the problem.
“A lot has changed in recent years,” McCarthy began. “Our southern border was once secure. Now, the number of illegal immigrants who crossed our border in just two years easily exceeds the population of 25 states.”
“Americans are getting hammered by higher prices. Today, nearly two-thirds of all Americans are living paycheck-to-paycheck, struggling to make ends meet. Meanwhile, China is infiltrating our culture, our farmland, and our skies because they see us as weak,” McCarthy continued, referring to the Chinese spy balloon that hovered above the United States for a week.
“This is not sustainable,” McCarthy added. “But of all the dangers we face, the greatest threat to our future is our national debt.”
McCarthy then began to explain the severity of the U.S. debt crisis and the effects it is having on the country.
“We are now 31 trillion dollars in debt. That is more than the size of the entire American economy. 20 percent more. Our debt is now a greater burden than it has been at any time since World War 2,” he said. “If we continue down this path, in the next ten years, we will spend over 8 trillion dollars just on interest. That’s more than the entire federal budget this year. By a lot.”
“That is neither affordable nor sustainable,” he continued. “When debt is too high, inflation is the result. That’s where we are today. Inflation has exploded. Mortgage rates have doubled. Working Americans – after inflation and taxes – have gotten a pay cut.”
“Like many Americans, you may be wondering, how did we get here?” McCarthy added. “Yes, our nation has taken on debt for most of its history. But the last few years have been different. Washington fell for a financial fad – a fiscal fraud – that the national debt doesn’t matter, that money can always be created out of thin air to pay for it and that the solution to higher prices is higher taxes.”
McCarthy then addressed the high levels of government spending by the Democrats, and their intent to continue to spend at high levels without any plan on reducing the federal deficit.
“For years, we’ve watched as Democrats in Congress spent your hard-earned tax dollars like those dollars were imaginary,” McCarthy explained. “Thanks to four years of runaway spending by the Democrats, they increased annual discretionary spending by 400 billion dollars – a 30 percent increase in just four years. They took our nation’s credit card, spent like crazy, and left us in deep debt.”
“In 2021, Democrats passed the largest debt limit increase in American history. Then, they maxed out our nation’s credit card again just 13 months later,” he continued. “Now, President Biden wants Congress to raise the debt limit yet again without a single, sensible change to how government spends your hard-earned money. None.”
“Well, I think I speak for most Americans when I say, it’s time for Washington to change its behavior and act like adults,” he added. “90 days ago, the American people chose to give Republicans power in the House of Representatives because we are committed to finding solutions that curb inflation at its source – wasteful Washington spending… The debt limit is one of the most important opportunities Congress has to change course. How we respond will determine what happens to our children and to their children in the coming years and decades.”
McCarthy pointed out that President Biden previously voted against raising the debt ceiling during his time as a senator, and then listed three ways to help alleviate the debt crisis.
“First, we will continue to sit down and negotiate – just as President Biden did in the past,” McCarthy said. “Second, we must commit to finding common ground on a responsible debt limit increase. Finding compromise is exactly how governing in America is supposed to work – and exactly what the American people voted for just three months ago.”
“Third, we must move towards a balanced budget and insist on genuine accountability for every dollar we spend. Future generations deserve nothing less,” he continued. “A responsible debt limit increase that begins to eliminate wasteful Washington spending and puts us on a path towards a balanced budget is not only the right place to start. It’s the only place to start.”
McCarthy concluded by saying, “Mr. President, Congressional Republicans are ready to act – to save our country and to make America stronger. I hope you will join us.”
