"Now, the final critical step in winning the future is to make sure we aren’t buried under a mountain of debt.
We are living with a legacy of deficit spending that began almost a decade ago. And in the wake of the financial crisis, some of that was necessary to keep credit flowing, save jobs, and put money in people’s pockets.
But now that the worst of the recession is over, we have to confront the fact that our government spends more than it takes in. That is not sustainable. Every day, families sacrifice to live within their means. They deserve a government that does the same.
So tonight, I am proposing that starting this year, we freeze annual domestic spending for the next five years. Now, this would reduce the deficit by more than $400 billion over the next decade, and will bring discretionary spending to the lowest share of our economy since Dwight Eisenhower was President."
– President Barack Obama
"We face a crushing burden of debt. The debt will soon eclipse our entire economy, and grow to catastrophic levels in the years ahead.
On this current path, when my three children — who are now 6, 7, and 8 years old — are raising their own children, the federal government will double in size, and so will the taxes they pay.
No economy can sustain such high levels of debt and taxation. The next generation will inherit a stagnant economy and a diminished country.
Frankly, it’s one of my greatest concerns as a parent — and I know many of you feel the same way.
Our debt is the product of acts by many presidents and many Congresses over many years. No one person or party is responsible for it.
There is no doubt the President came into office facing a severe fiscal and economic situation.
Unfortunately, instead of restoring the fundamentals of economic growth, he engaged in a stimulus spending spree that not only failed to deliver on its promise to create jobs, but also plunged us even deeper into debt.
The facts are clear: Since taking office, President Obama has signed into law spending increases of nearly 25 percent for domestic government agencies — an 84 percent increase when you include the failed stimulus.
All of this new government spending was sold as “investment.” Yet after two years, the unemployment rate remains above 9% and government has added over $3 trillion to our debt."
– US Representative Paul Ryan (R-WI)
US Debt is effectively perpetuities and ever-increasing; thus, pay the most attention to the percentages. If debt is increasing too fast, it is problematic. If the interest-receipts ratio is too high, it is also problematic. I am of the mind that US debt is best managed if it is increasing at less than 8% per annum and if the interest-receipts ratio is less than 20%.