…in the long run, at the rate we’re going, entitlements plus interest would basically be the entire government’s budget, unless you raise taxes considerably…
~Ben Bernanke
Bernanke: Get Government Spending Under Control to Spur Economic Growth Today.
Fed Chairman also testifies on the need to enact pro-growth tax reform and get health care costs under control.
Rep. Paul Ryan, Chairman
Committee on the Budget
2/9/2011
Chairman Paul Ryan asked Bernanke to sum up his view on the nation’s unsustainable fiscal trajectory and its effect on the economy:
RYAN: “To summarize, you do believe that one of the best things we can do for short-term economic growth is to put out a plan that actually stabilizes our fiscal picture, that actually gets our liabilities under control, and shows with confidence that we have the right trajectory because we’ve addressed the programs – which are spending programs – that are getting us out of control. Is that the case?”
BERNANKE: “That’s correct.”
* * *
Later, in response to a question from freshman Representative Bill Flores of Texas, Bernanke elaborated on his view that long-term cuts and controls are necessary to restore the confidence that businesses need to create jobs and invest in the future:
There’s more video from today’s hearing at House.gov
