Foster's Spending and Borrowing Spree Will Bring 'Massive' Economic Consequences and Fewer Jobs

From the National Republican Congressional Committee (NRCC)…

New Study Shows Illinois Democrat’s Failed Fiscal Policies Could Lead to Decades of Stunted Economic Growth

WASHINGTON — Even after Bill Foster spent over $800 billion on his failed Democrat stimulus spending spree (Roll Call #70, 2/13/09), the economy continues to struggle with stagnant growth. Now new reports show that the unprecedented annual trillion dollar deficits President Obama and his former Congressional Democrat ally Foster have presided over will likely result in decades of poor economic growth.

“After presiding over the most rapid debt increase in American history with their failed stimulus spending spree, President Obama and his Washington allies like Bill Foster are leaving families and small businesses in Illinois with the consequences,” said NRCC Communications Director Paul Lindsay. “If Foster and Obama are reunited in Washington to continue their endless spending and borrowing, it will only hurt economic growth even further and put America on the path to decline.”

A new economist study shows that historically, countries with large debt loads see “massive” economic consequences:

“The U.S. and other developed economies with high public debt potentially face ‘massive’ losses of output lasting more than a decade, even if their interest rates remain low, according to new research by economists Carmen and Vincent Reinhart and Kenneth Rogoff.

“In a paper published today on the National Bureau of Economic Research’s website, they found that countries with debts exceeding 90 percent of the economy historically have experienced subpar economic growth for more than 20 years. That has left output at the end of the period a quarter below where it would have been otherwise.” (Rich Miller, “Reinharts, Rogoff See ‘Massive’ Output Losses From High Debt,” Bloomberg, 5/1/12)

The United States unfortunately falls squarely in this category:

“Gross federal U.S. debt has exceeded 90 percent of GDP for the last two years and is projected to remain above that level at least through 2017, according to the White House’s Office of Management and Budget.” (Rich Miller, “Reinharts, Rogoff See ‘Massive’ Output Losses From High Debt,” Bloomberg, 5/1/12)

President Obama has the dubious honor of presiding over “the most rapid increase in the debt under any U.S. president.” (Mark Knoller, “National debt has increased $4 trillion under Obama,” CBS News’ Political Hotsheet Blog, 8/22/11)

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