“Well-designed rules can help promote improved fiscal performance,” Bernanke said today in a speech in Providence, Rhode Island. A rule “could provide an important signal to the public that the Congress is serious about achieving long-term fiscal sustainability, which itself would be good for confidence,” he said.
Bernanke provided one of his most detailed prescriptions yet for reducing the record federal budget deficit. He said in congressional testimony in June that unless the U.S. makes a “strong commitment to fiscal responsibility,” the country in the long run will have neither economic growth nor fiscal stability.
“It is crucially important that we put U.S. fiscal policy on a sustainable path,” Bernanke said at the Rhode Island Public Expenditure Council’s annual dinner, where he was invited to speak by Senator Jack Reed, a Democrat from Rhode Island and member of the banking committee.
“The only real question” is whether adjustments to taxes and spending will come from a “careful and deliberative process” or from a “rapid and painful response to a looming or actual fiscal crisis,” Bernanke said.
I cannot think of any process more “careful and deliberative” than the process required by the Constitution to adopt a new constitutional Amendment. For that reason, I support the Spending Limit Amendment proposed by Reps. Mike Pence and Jeb Hensarling. Read about it HERE.
Perhaps, now that Ben Bernanke is urging an end to our federal government’s spendthrift ways, the Democrats will listen. Somehow, I doubt it. Previous attempts to appeal for fiscal sanity, such as the appeal made earlier this year by Jim Bunning, have after all not been received so well.