Republicans hit the ground running in January, voting to cut spending by $2.6 trillion by repealing the onerous ObamaCare law. In February, while the Obama administration reported a record-breaking monthly deficit of $223 billion, we simultaneously worked to reduce our massive debt by passing a budget with $60 billion in cuts, banning Congressional earmarks, and passing 1099 repeal legislation that would reduce federal spending by $20 billion over 10 years.
But more must be done. With the debt totaling more than $14 trillion (that is $45,000 per citizen), a sluggish economy and unemployment still near nine percent, large-scale reductions in government spending to reduce our deficit are imperative if we want to get this country back to work and leave a prosperous America for our children and grandchildren.
On Tuesday, the House Joint Economic Committee Republicans unveiled a study that proves what we have known for a long time—less government spending lowers the deficit, which boosts economic growth and small business job creation. The study, entitled "Spend Less, Owe Less, Grow the Economy," affirms that reducing government spending as a percentage of GDP will accelerate economic growth and create an environment for hiring. The study looks at how a number of developed countries, such as Canada, Sweden and New Zealand, have successfully reduced government spending and stabilized the level of government debt through fiscal consolidation programs. Each country achieved their goals for government deficit reduction and GDP growth rates by drastically reducing government spending. We must do the same.
The philosophy in this study is consistent with what numerous small business owners have been telling me in our hearings: cutting spending, keeping taxes low, and reducing job-crushing regulations are all needed to unleash the power of the most dynamic elements of our economy– small businesses and entrepreneurs.