Geithner acknowledges runaway federal spending is a problem
Secretary calls for a balanced solution.
Treasure Secretary Timothy Geithner is calling the government's long-term fiscal commitments "unsustainable" and is calling for the government to take a balanced approach to addressing the issue.
Even Timothy Geithner recognizes the danger of runaway federal spending, but there remains no plan to hold it in check.
While Geithner recognized the importance of cutting runaway federal spending he has also called for a reasoned approach to cuts, one that balances cuts with raising taxes and spending in some areas to improve infrastructure and education.
He defended Obama, "The President has a different strategy for economic growth. He believes that while our long-term fiscal problems are formidable, we can address them over time with a balanced package of reforms that preserve room for investments that will help us grow."
It should be noted that the President has not produced any such plan that is consistent with Geithner's comments.
Still, Geithner has a point that is ironically somewhat conservative.
"Cutting government investments in education and infrastructure and basic science is not a growth strategy. Cutting deeply into the safety net for low-income Americans is not financially necessary and cannot plausibly help strengthen economic growth. Repealing Wall Street reform will not make the economy grow faster -- it would just make us more vulnerable to another crisis."
"This strategy is a recipe to make us a declining power -- a less exceptional nation. It is a dark and pessimistic vision of America."
Naturally, no true patriot wants to see America decline, and all would likely agree that there is value in having some form of safety net for those who fall on hard times. Infrastructure such as transportation and communication networks as well as education, all make the country stronger and more competitive in the world market.
The difference comes from the notions of Wall Street reform, if it is needed and if so, to what degree? Who should pay for making America exceptional again, and how much? What should be cut and where should the nation invest? Do we need new taxes or do we collect enough already?
While these questions remain unanswered it will prove difficult to move forward with a specific and unified vision of America's future. But in reality, these are not questions for Geithner or the President to answer. They must be answered by the voters, and that will happen in November.
© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: Timothy Geithner, Obama, federal spending, debt, unsustainable
Rate This Article
Leave a Comment
More Business & Economics News
- Web developer: Earn $60,000 a year - without college degree or debt
- China, India, Brazil could dominate global investment by 2030
- Unemployment in U.S. comes roaring back - in a big way
- Criminally unfair? Why disgraced Enron CEO Skilling could see freedom sooner than you think
- Berkshire Hathaway Inc. hits first quarter record profit at 51 percent
- China and Japan now hold record amounts of Obama debt
- Does shift to mobile mean Facebook's salad days are done? Not at all
- U.S. annual growth rate slowest since 1929, start of Great Depression
- Prosperity gap between races in U.S. widened during recession
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.