Unfortunately this is par for the course in Washington where out-of-control federal spending and borrowing is pushing the United States to the brink of a Greek-type economic meltdown.
Since President Obama took office in January 2009 non-defense discretionary spending has increased by more than 84 percent. We are spending one-half more than we are taking in this year with a projected budget shortfall of $1 trillion over the next ten years.
According to the Peter G. Peterson Foundation as a percentage of our economy, total federal, state and local public debt in the U.S. already exceeds levels in Spain and are comparable to Ireland and Great Britain. We will reach Portugal's levels within two years and Greece's levels within 10 years on our present course.
Recently President Obama and members of his economic team voiced their support for a Greek-style value-added tax, or VAT, as one solution to our ever-growing 13 trillion dollar federal debt — a tax-and-spend economic policy I vehemently oppose that will do little to get our deficits under control over the long-term.
And like Greece, we have a history of cooking the books. Today the Obama Administration is hiding the cost of bailout out mortgage giants Fannie Mae and Freddie Mac — a price-tag of $62.3 billion while exposing U.S. taxpayers to $5.4 trillion in risk.
All of this adds up to a sobering litany of problems similar to those seen in Greece: too much spending, too much debt, too many taxes, too many regulations.
Barring a dramatic change in the way Washington does its business the United States could ultimately find itself where Greece is today. We have been warned and failure to act would be a “Greek tragedy.”