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Below is my most recent TREASURER'S BLOG. Please share it with your family, friends, and associates. My speaking schedule is posted on the Treasury website, where there is also a place to invite me to speak to your group. Thank you.
Maine Is, Thankfully, Unlike Washington
The lack of honesty and fiscal common sense in Washington is breathtaking. For weeks, spendthrift politicians insisted that our country was inches away from default… On August 2 the federal coffers would run out of cash. Therefore, the career politicians must allow themselves to borrow another $2.4 TRILLION to pay the bills.
Did they forget that $2.2 TRILLION of annual tax revenues easily covers $200 billion of interest owed on the $14 TRILLION national debt? Or, maybe it was just too painful to cut enough spending to close this year’s $1.5 TRILLION budget deficit. (This is the third year in a row that Washington spent at least $1 TRILLION more than it collected in tax revenues. The shortfalls have been funded by borrowing the money by selling government bonds.)
The reckless elected officials who spent us into oblivion are now boasting about the debt ceiling “deal” that saved us. Let’s see… Allow another $900 billion of borrowing now in return for promising to cut spending by that amount over ten years. In other words, “Trust us now. We’ll make it right later.” We’ve been down this path before. The result has been a $14 TRILLION national debt that’s draining life from our economy with no plan to pay it off.
This debt ceiling “deal” is not good for anyone except the politicians who crafted it. It doesn’t fix two problems that are drowning us in fiscal imprudence: (1) preventing Washington from spending what we don’t have; and (2) addressing the $14 TRILLION national debt. What an embarrassing missed opportunity.
Maine and Washington, thankfully, are heading in opposite fiscal directions. Maine state government’s new path is healthy; the federal government’s is poison. During the past seven months:
Not bad for seven months. The feds can learn a lot from Augusta’s new fiscally prudent leadership team. Stay tuned.
Maine State Treasurer