Senate Republican Leader McConnell tells Obama to act on debt crisis

The leader of the Republicans in the United States Senate, Senator Mitch McConnell from Kentucky, is imploring the Obama administration to get seriously involved in doing something about the debt crisis in America.  For example, today Senator McConnell said: "One recent study suggests that any nation which carries a public debt load at or above 90 percent of its economy loses one point of economic growth, which the administration’s own economists have said is equivalent to one million jobs. So why won’t they propose a serious plan to lower it?  When will the administration follow through on what it knows it has to do to spur job growth?  The solutions are right in front of us."

The American people are fed up with the Obama administration dragging its heels about doing something regarding the massive debt crisis in America.  Indeed, 90% of Americans view the economy negatively, 2/3 of the American people believe America is on "the wrong track," and many expect another Great Depression. 

Senator McConnell says the debate over raising the debt ceiling is an ideal time to address America's fiscal crisis and views the upcoming debt ceiling vote as an opportunity.  Senate Republican Leader McConnell's press release today is directly below.

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Debt Limit Vote Is An Opportunity to Cut Spending, Reform Entitlements

`So looking ahead, the key to success, in my view and in the judgment of others, including Moody’s, is for everyone involved to view the upcoming debt limit vote as an opportunity — an opportunity to reduce Washington spending now and to save the taxpayers trillions of dollars over the long term. It’s an opportunity to put our fiscal house in order, and to prevent the fiscal crisis that we all see coming.

We know what we need to do. It’s time to do it.’

Washington, D.C. – U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate floor Thursday regarding the need to view the upcoming debt limit vote as an opportunity to reduce Washington spending, reform entitlements and grow the economy:

“With each passing day, the American people grow more concerned about our nation’s future. A Washington Post ABC news poll this week said that by a ratio of two to one, Americans believe we’re on the wrong track and nine out of 10 rate the economy negatively. And yesterday’s CNN poll found that many Americans expect another Great Depression.

“It’s in this context that President Obama has started talking about how concerned he is about jobs. This week, the President said he wakes up every morning and asks himself what he can do to spur job creation. And every morning this week I’ve come to the floor with some suggestions for him.

“The fact is, many Americans have a hard time believing the President is focused on jobs when so many of his policies seem designed to destroy them. And in some key areas, like trade, energy, and debt, the President himself has acknowledged that a reversal of his policies would create jobs and spur recovery.

“Let’s start with trade. Hoping to sound like he had a plan for job creation, the President used the giant platform provided by his annual State of the Union address in January to declare that he’d finalized a trade agreement with South Korea that would support at least 70,000 American jobs. Yet nearly five months later, he sent his aides out to say that he won’t sign them into law unless Congress approves billions more in government spending first.

“On energy, the President has acknowledged the pressure that regulations put on job creators. That’s why he ordered a review of them in January. Yet, by one estimate, the national energy tax his administration is trying to pass through the EPA could cost by some estimates millions of jobs. And while the President has acknowledged that in order to sustain economic growth and create jobs, as he put it last year, we’d need to harness traditional sources of energy, his continued refusal to issue drilling permits in the Gulf has had a devastating economic effect.

“On the debt, the President himself has said, `If we don’t have a serious plan to tackle the debt and the deficit, that could actually end up being a bigger drag on the economy than anything else.’ And yet under his leadership, the nation’s national debt has skyrocketed 35%, from $10.6 trillion to $14.2 trillion, our deficit is three times bigger than the biggest annual deficit during the Bush Administration, and the President refuses to put forward a serious plan to do anything to bring the debt or the deficit down.

"So there’s a pattern here. The President likes to say that he’s concerned about the economy and jobs, but his policies tell a different story. He can talk all he wants, but he can’t walk away from what he’s done, and the things he’s failing to do right now to create private-sector jobs and get our economy moving again. Chief among them is his refusal to do anything to lower the debt and deficits he’s done so much to create.

“Right now U.S. businesses are sitting on nearly $2 trillion in cash. Most of them would love to invest this cash in new products and ventures — and employees — and yet they’re holding back. Why? It’s not just the regulations and the mixed signals they’re getting about taxes, or the expectation that all the spending today will necessarily lead to higher taxes tomorrow. It’s also the uncertainty surrounding our future. How can businesses be confident about the future and hire new workers to build that future if the Democrats who run the White House aren’t willing to do anything about our deficits and our debt?

“Investment follows certainty. That’s one thing this White House refuses to provide. And this ongoing uncertainty is paralyzing our economic recovery and seriously hindering job creation.

“One recent study suggests that any nation which carries a public debt load at or above 90 percent of its economy loses one point of economic growth, which the administration’s own economists have said is equivalent to one million jobs. So why won’t they propose a serious plan to lower it?  When will the administration follow through on what it knows it has to do to spur job growth?  The solutions are right in front of us.

“The administration acknowledges that free trade agreements, expanding domestic energy exploration, cutting regulations, providing tax certainty, and reducing the debt will lead to a dramatic increase in jobs. Why won’t it follow through?

“Too often, unfortunately, the answer is political. They don’t want to cross some special interest group — whether it’s those who don’t like trade agreements or those who don’t like the way private companies like Boeing run their businesses, or those who just don’t want to give up a single penny of federal spending.

“But the good of the country is more important than the goals of some political interest group. We have to rein in our debt, cut spending, reduce taxes, reform entitlements, and grow this economy. The administration knows this as well as I do. It’s time they act on it.

“So looking ahead, the key to success, in my view and in the judgment of others, including Moody’s, is for everyone involved to view the upcoming debt limit vote as an opportunity — an opportunity to reduce Washington spending now and to save the taxpayers trillions of dollars over the long term. It’s an opportunity to put our fiscal house in order, and to prevent the fiscal crisis that we all see coming.

“We know what we need to do. It’s time to do it.”

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