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Ted Cruz on Budget & Economy

 


Choice is more federal spending, or free markets & liberty

This election presents a stark choice. Two visions: we can continue down the road of the Obama Democrats, towards more and more spending, debt and government control of the economy and our lives. Or we can return to the founding principles of our nation- free markets, fiscal responsibility, and individual liberty.

23 million Americans struggling for work. $16 trillion in national debt. Government takeovers of healthcare, of financial services and many aspects of our economy. Imagine, for a moment, if someone surreptitiously charged hundreds of thousands of dollars on your credit cards, saddling your kids with debts they could never escape. That's exactly the impact of this administration's misguided policies.

How do we turn things around? How do we get America back to work? President Obama thinks the answer is more and more government. Government is not the answer. You are not doing anyone a favor by creating dependency, destroying individual responsibility.

Source: 2012 Republican National Convention speech , Aug 28, 2012

FactCheck: Yes, gross federal debt now exceeds GDP

Ted Cruz said the rising national debt was, as of today, "larger than our gross domestic product." Cruz's prepared text attributes his conclusion to an Oct. 2011 blog post by the Atlantic magazine suggesting the debt would surpass the nation's GDP by the end of that month.

The government defines the GDP, the marquee measure of national economic output, as the market value of the goods and services produced by labor and property within the country: currently $15.6 trillion.

The gross debt is best understood in two parts: Intragovernmental debt (money owed to other government agencies, basically an internal accounting issue) plus public debt (money borrowed from outside sources, giving it more of a connection to the economy). The public debt [is about] 73% of GDP--the highest level since 1950. The gross federal debt is $15.9 trillion, counting $4.8 trillion in intragovernmental holdings. [Cruz is correct if comparing GDP to the less-meaningful gross debt]. We rate this claim as Half True.

Source: PolitiFact on 2012 Republican National Convention speech , Aug 27, 2012

Demand a Balanced Budget amendment.

Cruz signed the Contract From America

The Contract from America, clause 3. Demand a Balanced Budget:

Begin the Constitutional amendment process to require a balanced budget with a two-thirds majority needed for any tax hike.

Source: The Contract From America 10-CFA03 on Jul 8, 2010

Limit federal spending growth to per-capita inflation rate.

Cruz signed the Contract From America

The Contract from America, clause 6. End Runaway Government Spending:

Impose a statutory cap limiting the annual growth in total federal spending to the sum of the inflation rate plus the percentage of population growth.

Source: The Contract From America 10-CFA06 on Jul 8, 2010

Supports a constitutional BBA.

Cruz supports the CC Voters Guide question on a constitutional BBA

Christian Coalition publishes a number of special voter educational materials including the Christian Coalition Voter Guides, which provide voters with critical information about where candidates stand on important faith and family issues. The Christian Coalition Voters Guide summarizes candidate stances on the following topic: "Passage of a Balanced Budget Amendment to the U.S. Constitution"

Source: Christian Coalition Voter Guide 12-CC-q11c on Oct 31, 2012

Supports the Cut-Cap-and-Balance Pledge.

Cruz signed the Cut-Cap-and-Balance Pledge to limit government

[The Cut-Cap-and-Balance Pledge is sponsored by a coalition of several hundred Tea Party, limited-government, and conservative organizations].

Despite our nation's staggering $14.4 trillion debt, there are many Members of the U.S. House and Senate who want to raise our nation's debt limit without making permanent reforms in our fiscal policies. We believe that this is a fiscally irresponsible position that would place America on the Road to Ruin. At the same time, we believe that the current debate over raising the debt limit provides a historic opportunity to focus public attention, and then public policy, on a path to a balanced budget and paying down our debt.

We believe that the "Cut, Cap, Balance" plan for substantial spending cuts in FY 2012, a statutory spending cap, and Congressional passage of a Balanced Budget Amendment to the Constitution is the minimum necessary precondition to raising the debt limit. The ultimate goal is to get us back to a point where increases in the debt limit are no longer necessary. If you agree, take the Cut, Cap, Balance Pledge!

    I pledge to urge my Senators and Member of the House of Representatives to oppose any debt limit increase unless all three of the following conditions have been met:
  1. Cut: Substantial cuts in spending that will reduce the deficit next year and thereafter.
  2. Cap: Enforceable spending caps that will put federal spending on a path to a balanced budget.
  3. Balance: Congressional passage of a Balanced Budget Amendment to the U.S. Constitution -- but only if it includes both a spending limitation and a super-majority for raising taxes, in addition to balancing revenues and expenses.
Source: Cut-Cap-and-Balance Pledge 12-CCB on Jan 1, 2012

Endorsed by the Club for Growth, for pro-growth stances.

Cruz is endorsed by by the Club for Growth, a conservative PAC

The Club for Growth endorses economic conservatives. Their endorsement statement:

"Members of the Club are economic conservatives, like-minded political contributors who are frustrated with the ideological drift of both parties today. Club members have a shared goal of contributing to and electing more Reaganites to Congress who are willing to stand for the issues like: cutting taxes, controlling federal spending, personal accounts for Social Security, ending the death tax, eliminating the capital gains tax, fundamental tax reform, providing true school choice and minimizing government's role in our daily lives."

Source: CFG website 12-CFG on Oct 31, 2012

Audit the Federal Reserve & its actions on mortgage loans.

Cruz co-sponsored Federal Reserve Transparency Act

The Federal Reserve Transparency Act directs: