Greek debt crisis should be a warning for U.S.

I heard on the radio last night a troubling interview with MIT economist Kristin Forbes about the debt crisis in Greece and its global ramifications. The audio of the interview can be found here and I encourage you to listen to the entire segment.

The most concerning part of the interview was Forbes’ statement that if the United States doesn’t reign in its own deficit spending, we will face a situation similar to the crisis in Greece within the next five to ten years. Forbes noted that our current total debt is close to 90% of our gross domestic product, and is on track to rise above 100% within the next decade.

Greece’s overspending and its inability to pay its debt has roiled global financial markets, destabilized the Euro and caused serious domestic upheaval in Greece. Greece’s economy is smaller than the state of Georgia, but the global implications of Greece’s fiscal crisis are enormous. The fallout from a similar debt crisis in the United States would be catastrophic.

Greece’s experience should serve as a warning to America of the consequences of overspending and excessive borrowing. Our ballooning national debt is the largest single threat to our economic stability. Both parties share some responsibility for the enormous fiscal deficits, but in the last year and a half we’ve seen government spending grow on an unprecedented scale.

When elected to Congress, I will make cutting this big-government spending a top priority. We owe it to our children to leave to them a nation that is financially strong and fiscally stable, and Greece’s current economic woes are a warning of the ramifications if we do not bring our fiscal house in order.

To read more about Pat's views on fiscal responsibility and the budget, click here.