Political Quotes

“Just to expand a little bit on why balancing the budget is important with this whole tax reduction to motivate economic and job expansion, if we can balance the budget at the same time, that means that the demand for borrowing money from the Federal Government will reduce the pressure on interest rates. Right last year the Federal Government borrowed 41 percent of all of the money lent out in the United States. Just think back to your Economics 101. If you lower that demand with Government borrowing 41 percent of the money, if you can balance the budget and have Government borrow less money, it is going to mean interest rates go down. In our Committee on the Budget, Alan Greenspan, chairman of the Federal Reserve, came to our Committee on the Budget and said, look, if Congress balances the budget, we could see interest rates go down up to between 1 and 2 percent. That means that if interest rates go down, every business in this country finds that whatever they are going to buy in terms of tools, in terms of expansion, they see a significant reduction in their costs. So interest rates going down means a tremendous stimulant to the economy. A combination, like Zach Wamp says, a combination of stimulating economic and job expansion, at the same time that we start pinching those pennies here at the national level and making sure we balance that budget, is going to see the greatest economic and job expansion this country has ever seen.”