Maxwell Frost: “Economics 101 tells us that if we spend more than we make, we quickly find ourselves in a hole. And as the gentleman…”

“Economics 101 tells us that if we spend more than we make, we quickly find ourselves in a hole. And as the gentleman from Texas (Mr. Stenholm) often says when asked about the Federal deficit, the first thing we have to do when we find ourselves in a hole is stop digging. Well, Mr. Speaker this country has been digging for 3 straight years, and the result is a very, very deep hole. Three years ago we projected a surplus of $432 billion for fiscal year 2005. But the Republican budgets of the past 3 years have changed a few things. We now face a deficit of $521 billion this year; a debt accumulation of $1.2 trillion over the last year, this year, and the next; and deficits will continue as far as our forecasts go. That is a dangerous trend, Mr. Speaker, and I will tell the Members why. Budget deficits and the ensuing debt are bad for the economy. That is a view that almost all economists share. The current chairman of President Bush's Council of Economic Advisers, Harvard Professor Gregory Mankiw, even agrees.”