High-Country Health Food and Cafe in Mariposa California



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March 24, 2018 - Congressman Tom McClintock voted no on H.R. 1625 – Consolidated Appropriations Act that passed the House, Senate and was signed by President Trump on Friday.

The congressman comments on why he voted no on the act:

tom mcclintock congressmanThis is the $1.3 trillion “Omnibus” bill that increases discretionary spending a staggering 18 percent in a single year, puts us on course for a trillion dollar deficit next year and sets the stage for a sovereign debt crisis within the next few years.  

A trillion dollar deficit puts $8,000 of additional debt on an average household – debt that families will be required to pay back through their future taxes.  In the present, it crowds out a trillion dollars of capital that would otherwise be available to loan to consumers to make consumer purchases, homebuyers to buy homes and businesses seeking to expand.  Worst of all, it sets the stage for a sovereign debt crisis such as those now crippling Puerto Rico and Venezuela.   

We are already carrying $21 trillion of debt – the largest debt relative to GDP in our nation’s history.  We are now paying $475 billion in annual interest on that debt.  That’s nearly $4,000 per household just to rent the money we’ve already spent.  By contrast, we spend about $650 billion on the entire defense department.

Here’s what will happen according to the economists who have testified to the House Budget Committee.  As we reach a trillion dollars of annual deficit, lenders will become increasingly wary of the government’s willingness to control its spending and its ability to support its debt.  They will begin charging increased interest to cover the risk.  Every one percent increase in interest rates will add $200 billion of additional annual interest costs.  That will cause growing concern and still higher rates.  Once this develops into a debt spiral, it will be unstoppable and devastating.  Hemingway said there are two ways to go bankrupt.  First very gradually, and then quite suddenly.  I’m afraid our country is fast reaching that cliff.
Source: Congressman Tom McClintock