Institutional reforms, updated procedure, and even Constitutional provisions may be necessary to avoid a complete fiscal crisis in America, according to testimony presented Wednesday before the House Committee on the Budget.
Rising debt and deficits threaten not only economic growth and income levels, but also increase the risk of a severe U.S. fiscal crisis if investors lose faith in the government’s ability to service its debt in full, Committee Chairman Jodey Arrington, R-Texas, stated at a hearing Wednesday.
“We’ve got major fiscal problems and a completely unsustainable fiscal trajectory. I haven’t heard anyone, Democrat or Republican, witness or member, that doesn’t accept that fact,” Arrington said. “This is a moral imperative, to right this ship before it sinks.”
The U.S. national debt, currently over $36 trillion, will soon exceed its record high of 106% of GDP.
