Many people call me a wolf boy. The reason is my decades-long concern about the ever-increasing U.S. government debt.
For years, in Congress and as governor, I have raised the alarm about the federal government's corrosive habit of spending more than it takes in, and the need to borrow even more money to fill the gap. It rang. Currently, the federal government's budget deficit is $1.8 trillion, and the outstanding national debt, including government bonds and other borrowings, totals $36 trillion.
Yet I am constantly reminded that the Republic still exists. “John, what's the big deal? A little debt is fine. The government can handle it.”
Until I can't do it anymore. And when things finally go bad, debt will become the wolf that eats not just me, but all of us.
I am a fiscal conservative and believe that responsible stewardship of the public's money is one of the top priorities for elected leaders. I chaired the House Budget Committee in the late 1990s, when the federal budget was balanced for the first time since 1969. As Governor, I balanced Ohio's budget every year, including closing the 20 percent budget gap I inherited when I took office. It wasn't easy, but it was worth it.
Lower government spending can lower taxes and free up more money for people and businesses. That leads to economic growth. In Ohio, spending restraints have allowed us to fill our state's emergency fund and cut taxes by $5 billion, a trend that has continued since I left Congress. As a result, Ohio's economy is doing well.
Furthermore, when government spending is restrained, the amount of money the government has to borrow is reduced, which leaves more capital in the market for the private sector to use for investment and job creation.
And, perhaps just as importantly, there will be less need to borrow and we will be less dependent on foreign purchases of U.S. Treasuries, including many countries we consider adversaries. Yes, many foreign governments are buying our bonds, and China is the second largest holder after Japan, funding our excessive spending.
But what if foreign countries stop lending us money for fear that we won't be able to pay them back? Then they have to pay higher and higher yields to get all the money they need? You may end up with more debt. Continuing to rely on countries with their own interests and policies is not a safe position in the long term.
It doesn't have to be this way.
On Election Day, voters sent a resounding message: They want a new direction. So, as a new team prepares to take command of the White House and Congress, now is the time to recognize the vulnerabilities created by our national debt and overspending and do something about them.
Making big changes requires discipline, planning, a willingness to make hard choices, and, of course, bipartisan cooperation. New leaders always feel that the world is theirs, but in reality the opinion of Congress is very narrow. We need votes from across the aisle to get anything done.
Our national debt is a wolf lurking in the woods, waiting to pounce. It's not a phantom problem and it won't go away. The huge reset of this election gives us a chance to do something about it and make choices that deliver a range of benefits from greater fiscal responsibility, including lower taxes, lower interest rates, and increased national fiscal security. I'll give it to you.
New leaders in Washington should act quickly on meaningful and sustainable spending cuts, entitlement reform, and debt reduction, and should not fear bipartisanship when that is needed. It won't be easy, but the debt hunger will only grow and will not stop unless we act quickly and decisively.
John R. Kasich served as Governor of Ohio from 2011 to 2019 and as a member of the House of Representatives from 1983 to 2001.
