Also says Obama Administration’s decision to “radically grow the size of government” is making the situation worse

WASHINGTON, DC – In a speech this morning to The Ripon Society, New Hampshire Senator and longtime fiscal hawk Judd Gregg stated the Greek debt crisis is a “precursor” to the budgetary situation facing the United States, and added that the President’s decision to “radically grow the size of government” during the first 15 months of his administration is making the situation worse.

“When we look at what’s happening in Greece,” Gregg stated, “we should be really worried, because the Greek situation reflects the meltdown of the nation and its economic stability. It’s really a precursor for our situation – whether we like it or not. We know, for example, that under the present scenario, our debt will double in the next five years and triple in the next 10 years. Those are staggering numbers. We will go from a public debt-to-GDP ratio of what has historically been about 35 percent, which is a very strong position to be in… to 62 percent.”

“Those are intolerable numbers. They are numbers which lead to bankruptcy and which lead to insolvency. What’s driving this? There are two things driving it in my opinion. First, is the incredible expansion of government under the Obama Administration. This administration has decided to radically grow the size of government – not incrementally, but literally radically grow the size of government…”

Gregg noted that this increase in the size of government is coupled with a massive demographic shift in the U.S. In 1950, he noted, there were 16 workers paying payroll taxes for every Social Security beneficiary. Today, that number has dropped to two workers per beneficiary.

“How do we address it?” Gregg asked, referring to the looming crisis. “Number one, you stop spending – it’s that simple… You just plain stop spending money you don’t have and adding programs you can’t afford. This is especially true on the discretionary side of the ledger. There’s no reason we shouldn’t freeze discretionary spending for at least … four years. Secondly … we’ve got to look at these entitlement programs – especially Medicare and Social Security – and recognize that because of this demographic shift, they are no longer affordable to the younger generation.

“You can’t have young Americans who are working, two of them paying to support one American who’s retired. It doesn’t work effectively under the present benefit structure that we have. So, we’re going to have to change these entitlement programs. You don’t have to do it radically. You don’t have to do it in a way that’s draconian. You can phase it in … But you do have to take the action which shows you are going to move in that direction.”

In addition to these two steps – a discretionary spending freeze and entitlement reform – Gregg stated that the U.S. also needs to rewrite its energy and tax laws in a way that encourages not just domestic production, but domestic productivity, as well. Perhaps most important, though, Gregg stated the U.S. needs to have leaders who understand that the engine of the American economy is not the government, but the individual.

“We cannot allow ourselves to be moved to a European Democratic welfare state model,” he said, “which is exactly what our colleagues on the other side of the aisle want to do and what this administration has as its goal.”

Chairman Emeritus Bill Frenzel presents Senator Gregg with a “Rough Rider” award

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