State treasurer addresses Rotarians

HOULTON, Maine — Just how economically solvent is our nation and what does the future hold?
That was the topic of discussion Sept. 24 at the Houlton Rotary Club’s weekly meeting as Bruce Poliquin, Maine’s state treasurer, spoke to the group.
    Poloquin is a third generation Waterville native who worked his way through Harvard University, studying economics. He graduated in 1976 and entered the financial services business sector for 35 years. He was elected state treasurer in 2010 and is a former candidate for governor and the U.S. Senate.
He was the guest of Rotarian Matthew Nightingale of Katahdin Trust Company.
“It’s a pleasure to welcome the treasurer to Houlton,” Nightingale said. “We are always interested in the affairs of state government, particularly the issues that impact small business growth and private section job creation throughout the state.”
Poloquin spoke of the fiscal issues going on in Washington that are affecting the state.
“We as a people have to make some very fundamental decisions, not the least of which is ‘How big do we want government to be?’” he said. “We have a federal government that is too big, too expensive, and unaffordable.”
Poloquin presented a handout that showed the federal government’s spending trends over the past four years, which revealed that spending far exceeded revenues brought in from taxation.
“In each of the last four years, Washington has spent $1.5 trillion more than they collected from federal taxes and fees,” he said. “They make up the difference by either borrowing it, or worse, printing it.”
Poloquin said the U.S. had wracked up $16.4 trillion in national debt, as compared to just $1.4 trillion in 1983. That debt translates to $52,475 per U.S. citizen.
“This is real money that must be repaid,” he said. “The interest alone is $225 billion per year at rates that are at historic lows. When rates start to rise, those interest payments will rise. It’s the 600-pound gorilla in the room.”
Poloquin said Medicare, Medicaid and Social Security comprise 43 percent of the federal budget, while interest on the national debt makes up about 8 percent of the budget.
“We cannot fix the fiscal nightmare, unless we address those three programs and the debt,” he said. “Why is that important to Aroostook County? It’s the same reason as it is for all counties. If you are a business owner and you can invest your money anywhere you want, you will naturally gravitate to an area where you can be successful.”
Poloquin said this was one of the main reasons the nation was stuck at 8 percent unemployment for nearly four years.
“That’s the reality of the situation,” he said. “If we can’t get our fiscal house in order, we can’t defend ourselves because we can’t afford it. We can’t educate our kids and it goes on and on.”
Poloquin said that despite that gloomy history, there was reason to be optimistic for the future since figures in Augusta are slowly becoming more business minded.
“We understand what it takes to create a job, to risk our capital and grow a business,” he said. “We are slowly changing things in the state with the help of the legislature, which is creating a foundation to attract businesses and jobs for all parts of the state.”
Poloquin said the state was “taxing less, spending less and borrowing less” which was a positive indication that things were heading in the right director for Maine.
He also spoke of a possible company exploring plans in the state to expand natural gas pipelines, which could create a major source of heating for homes and touched on how introducing competition for health care plans could result in net savings to consumers.
“I buy my automobile insurance from Ohio,” he said. “Competition drives down prices.”
He admitted change was difficult and changing a culture in the state was not going to happen overnight.