East Arizona News

U.S. Representative David Schweikert (AZ-01) delivered a speech on the House Floor today, highlighting the concerning state of the country's finances. He emphasized that gross interest will exceed $1 trillion this fiscal year, making it the second largest expense in the government. Schweikert also drew attention to the fact that the Social Security trust fund is projected to run out of money in nine years, leading to a 25% cut in retirement benefits and potentially doubling senior poverty.

Schweikert addressed the issue of the Social Security trust fund running out, explaining that it operates separately from the general fund. He stated, "When the Social Security trust fund is empty, it doesn’t have a claim on the general fund either." The Congressional Budget Office (CBO) predicts a 25% reduction in Social Security benefits, which would result in an average couple receiving a $17,400 cut. Schweikert expressed concern over the potential increase in senior poverty and criticized the proposed solution of raising taxes, stating that it would not be enough to close the $616 billion shortfall.

The congressman also highlighted the alarming reality that every dime Congress votes on is borrowed money. He emphasized that 73% of federal government spending is on autopilot and not subject to congressional votes. Schweikert stated, "All this green is borrowed. All this blue is borrowed, and last year, about $400 billion of the red was borrowed. Everything a member of Congress votes on is borrowed money."

Schweikert further discussed the escalating borrowing costs, pointing out that the country is borrowing over $78,000 per second. He warned about the consequences of selling bonds at low interest rates and now having to refinance them at higher rates. The congressman raised concerns about the possibility of failed bond auctions and the potential stress it could create in the world bond market, which has significant implications for the global financial system.

In conclusion, Schweikert emphasized the seriousness of the country's financial situation. He highlighted the increasing interest costs and the shrinking trust funds for programs like transportation, Medicare Part A, and Social Security. Schweikert argued that these factors not only impact borrowing but also have long-term effects on the country's ability to meet its financial obligations.

Rep. Schweikert's speech serves as a stark reminder of the critical need for fiscal responsibility in Congress. The growing interest costs and the imminent depletion of the Social Security trust fund demand immediate attention and action. Failure to address these issues could have severe consequences for the economy and the welfare of American citizens.

Click this link to access more information: https://schweikert.house.gov/2023/12/07/schweikert-every-dime-that-congress-votes-on-is-borrowed-money/