Tags: Newt | Gingrich | US | Government | Next | Bubble | Pop

Gingrich: U.S. Government Is Next Bubble to Pop

Tuesday, 25 May 2010 10:04 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The Greek financial crisis has done more than just grab headlines in the financial world; it's repeatedly bruised the euro and it's served as a warning for what's in store for the U.S. economy, says former House Speaker Newt Gingrich.

Public spending is out of hand in the United States as it has been in Greece and the day of reckoning is on the way.

"Federal spending alone this year accounts for 25 percent of our nation's gross domestic product," says Gingrich, according to the American Enterprise Institute for Public Policy Research. "If you add state and local spending, the number is closer to 50 percent," he said.

"No economy can thrive when nearly half of all economic output is directed by politicians rather than entrepreneurs and small businesses."

Special: Don't Be a Victim. Avoid Obama's Tax Hike Robbery!


Unions are also causing problems, says Gingrich.

While overall union membership has declined during the last decades, the government has been more than happy to lend a hiring hand.

"Over 50 percent of all union workers in the U.S. are employed by the government compared with only 17 percent in 1980," says Gingrich.

"In addition, government workers make about $10 per hour more than the average private sector worker."

For Gingrich, reduced public spending and tax cuts are the way to right America's finances.

Even the Obama administration admits the need to control spending.

"It is not possible to imagine sound budgets in the absence of economic growth and solid economic performance," says chief White House Economist Lawrence Summers, according to Reuters.

Nevertheless, Summers says the Obama administration is aware of the dangers tied to a projected $1.56 trillion deficit but stresses that public spending is the way to get the economy rolling again.

Special: "SELL": — Financial Expert Warns of Looming Market Crash.


Appropriate short-run expansionary budget policy can make an important contribution to establishing the confidence necessary for sound growth," says Summers.

"I am convinced that it is impossible to sensibly address either unemployment or long-run fiscal challenges in isolation."

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved