By Rep. Cliff Stearns
Special to the Ocala Star-Banner
12/25/2011

As the moral philosopher Adam Smith noted, "What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom."

Consider the financial prospects for an American household where the family's total debt exceeds their income and the value of everything they own. Making their prospects worse, the household continues spending more than it earns.

Our nation is in this same debt crisis — earlier this year, our total debt surpassed our gross domestic product (GDP) of $15 trillion. We have accumulated a total debt of $15 trillion and the nonpartisan Congressional Budget Office projects that another trillion will be added next year.

We are on the same path toward financial collapse as Greece, which now has a debt to GDP ratio of 150 percent. In staving off a default on its debt, Greece has received bailouts from other European nations. Those nations also put forward an austerity plan for Greece.

If our nation fails in reducing its spending and borrowing, our creditors will make similar demands on the United States.

Yes, we are losing control over our economic destiny. In August, Standard and Poor's downgraded the U.S. debt rating for the first time ever. Furthermore, credit raters called for a $4 trillion reduction in spending over the next 10 years to avoid a further downgrade.

Before the downgrade, Congress and President Barack Obama approved the Budget Control Act, which raised the national debt by as much as $2.4 trillion and created a "supercommittee" in Congress to propose further debt reduction. The supercommittee has failed, triggering spending cuts that go into effect in January 2013.

I opposed the Budget Control Act as it provided too little debt reduction, abandoned Congress' constitutional responsibilities over spending and revenues, and provided for automatic spending cuts instead of carefully considered spending cuts.

In addition, it only required a vote on a balanced-budget amendment and imposed conditions on a future Congress that can be readily ignored.

I am honored that I was selected to chair the Energy and Commerce Subcommittee on Oversight and Investigations. This position provides opportunities to promote fiscal restraint by federal agencies, regulatory reforms to encourage economic growth and job creation, and reviewing what federal programs are working and those that are not.

In my hearing examining Medicare fraud, estimated to cost taxpayers $60 billion to $90 billion a year, the Obama administration witness was unable to even venture an estimate on the cost. However, other witnesses provided input on combating this waste and fraud. These recommendations and others coalesced into legislation I introduced, the Promoting Responsibility in Medical Expenditures (PRIME) Act, HR 3474.

I also am leading the continuing inquiry into the Energy Department's $37 billion loan-guarantee program. The first loan under this program, $535 million, went to Solyndra, which went bankrupt and was raided by the FBI.

My investigation so far has learned that the Solyndra loan was rushed and inadequate oversight was provided. We also found political influence in the loan decision and that investors had ready access to the White House West Wing. We are learning important lessons on how not to run a jobs program.

The panel also has held a series of hearings on the impact of regulations on the economy and job creation. The Competitive Enterprise Institute reports that regulations cost the nation $1.75 trillion last year, 10 times the corporate income tax that raised $157 billion in 2010. We have promised the American people that we will carefully review any regulation that threatens to cost our economy $100 million or more. The fact that we have to limit it to $100 million or more underscores the vast number of regulations.

In addition, I am confident that my hearing on the economic impact of revised EPA water standards on Florida will result in cooperation between the EPA and Florida in developing standards without the devastating economic impact of the federal plan.

The Government Accountability Office reports that there are 15 federal agencies involved in food safety, 80 programs on economic development, and more than 100 on surface transportation. It further reports that taxpayers could save $5.7 billion annually by correcting duplicative programs boosting ethanol production. I may hold a hearing on this next year.

Last year, the federal government took in $2.1 trillion, and this year, it is expected to receive $2.3 trillion. Controlling the growth in spending, ultimately, will yield a balanced budget.

For instance, the federal government owns 900,000 buildings and structures, and 24 federal agencies report that more than 45,000 are under-utilized. The Office of Management and Budget projects that selling some of these excess properties could save taxpayers $15 billion.

Reducing federal spending and our addiction to borrowing will allow us to control our economic destiny instead of ceding our sovereignty to foreign creditors, reversing a financial Armageddon.

U.S. Rep. Cliff Stearns, R-Ocala, represents Florida's 6th Congressional District in the U.S. House of Representatives.