“Chairman Greenspan’s insight is especially timely, given the President’s recent budget proposals and the lengthy debate to follow in Congress.  It is important for us to hear from an unbiased expert right now.   This morning, Chairman Greenspan spoke on the need to rein in deficit spending, urging Members of Congress to practice fiscal discipline, saying ‘Contrary to what some have said, [when deficits go up] it does affect long-term interest rates, it does have a negative impact on the economy.’  

“An analysis of the President’s proposed budget projects that the total national debt will continue to increase rapidly for the next decade and beyond.  The budget spends the entire $2.2 trillion Social Security Trust Fund Surplus.  With only five years until the baby boom generation begins to retire, we must take action to make sure that the Social Security system is viable when we will need it most.  As a result of the proposed budget, the total national debt will increase from $6.171 trillion at the end of fiscal year 2001 to $7.8 trillion at the end of fiscal year 2004, reaching $9 trillion by 2009 and continuing to rise.  The national debt would be on course to exceed $10 trillion by the end of the decade – and this does not account for the impact of possible war with Iraq.  

“As a member of the conservative Blue Dog Coalition, I have stressed the need for fiscal responsibility from day one in office.  My grandparents’ generation left this country a little bit better off for my parents’ generation, and they did the same for my generation.  If we continue to ignore the long-term consequences of our budgetary actions, we will be forcing our children and grandchildren to pay a steep price for the deficit spending we make today.”