GINGPAC founder William J. Murray issued the following statement following the vote:
Voltaire: Le mieux est l’ennemi du bien. We are seeking a perfect solution to a situation that is beyond repair. At this point, if the government drastically reduces spending, the nation will spiral into depression. If the government continues to borrow at the current rate, the nation will go bankrupt. The “perfect” Tea Party solution crashes the economy. The “perfect” liberal solution crushes America under debt and drives away investment. Unfortunately, nothing in the middle works either as long as it is a collective government action of some sort. The only solution is the natural one, which involves decline and reconstruction. Regrettably, the rebirth of a nation economically can take decades.
Rep. Jim Jordan (R-OH), the chairman of the conservative Republican Study Committee, issued a similar statement. Jordan noted:
After months of debate, the House and Senate have reached a deal to raise the debt limit (read about the plan here). In the end, I could not support the legislation. While it contains cuts and caps, they should be much more robust. Additionally, the framework of “triggers” and a new 12-member House-Senate committee opens the door to dangerous national security cuts and raises the possibility that six Democrats and one misguided Republican could rush tax increases to the House and Senate floors.
Most importantly, this deal is not a solution. The Cut, Cap, and Balance Act remains the only plan that protects our AAA credit rating from the risk of a downgrade.
Our debt is a permanent, long-term problem, and it requires a permanent solution in the form of a Balanced Budget Amendment. While the House and Senate will be required to vote on one this fall, there is no requirement that it pass and be sent to the states for ratification. Unless we send a Balanced Budget Amendment to the states, however, promises to cut spending today can always disappear tomorrow. (Watch our quick video on Washington Spending 101).
Just a few weeks ago, the Balanced Budget Amendment wasn’t even a part of the conversation, despite the overwhelming support it has among the American public. The growing momentum toward requiring Washington to actually balance its budget is encouraging, but there’s still a lot of work to be done.