Economist says deficit big threat
As is, economy unsustainable, conference told
August 19, 2006
By BRAD SCHRADE
Staff Writer
The future of the nation is in peril because of an unsustainable economic model, and Washington's partisan warriors lack the leadership and political courage to do anything about it, the U.S. comptroller general told a group of state lawmakers in Nashville Friday.
Americans must hold their leaders accountable for deficit spending and irresponsible political decisions, said Comptroller General David M. Walker, a trained accountant who is the nation's chief accountability officer.
If major charges aren't brought about, Americans' children and grandchildren will inherit a nation that is financially and socially broken, Walker said.
Deficit spending and the structural problems facing Medicare, Medicaid and Social Security will bankrupt the nation unless substantive reforms are made. Additional tax revenues and major changes to those entitlement programs are required to reverse the disastrous path Washington is leading the country down, Walker said.
The fiscal exposure the nation faces amounts to $46.4 trillion, Walker said, or approximately $411,000 per household.
"Anybody who tells you, Republican or Democrat, that we can grow our way out of this problem, number one is not telling you the truth and, number two, probably flunked math," Walker said. "Any Republican who tells you that we can solve our problem, or Democrat, without raising revenues isn't telling you the truth.
"Any Democrat or Republican that tells you we don't need to reform Social Security or Medicare is not telling you the truth. It's time they be held accountable. This is not a partisan issue. This is about the future of our country and about the future of our families. And it is a serious problem."
Walker made his comments on the closing day of the National Conference of State Legislatures being held this week at the Gaylord Opryland Resort & Convention Center.
He was part of a panel titled "Wake Up! The Federal Fiscal House is Falling," a group of economists and analysts from all political parties traveling the country to raise awareness of what they say is the most serious problem facing America.
All members of the panel agreed that the status quo will not work anymore.
The nation is perched on a major demographic bubble as the baby boomer generation begins to retire in the next few years.
As that occurs, it will place tremendous strain on these social programs, particularly Medicare, which most threatens the nation's financial health. There was also general agreement that the political climate in Washington has both political parties sticking their heads in the sand.
"Political parties are unwilling to make tough choices," said former Democratic congressional staff member Diane Lim Rogers, an economist who is now with the liberal think-tank Brookings Institution. "I saw this working on the Ways and Means Committee."
Brian Riedl, a policy analyst with the conservative think-tank Heritage Foundation, said economic experts from both political parties look at the long-term forecasts and come to the same conclusion: The system as it stands must be changed.
"It's not liberal versus conservative," Riedl said. "It's politicians versus economists and analysts."
Walker is the best known among the group. He has been speaking for several years trying to raise the level of debate on the pending problem.
As comptroller general, his office gives him a special perch in Washington to speak out without fear of losing his job. He is appointed to a 15-year term and heads the Government Accountability Office, a non-partisan, independent agency "that works for Congress and the American people," according to its Web site.
Walker outlined three ways to begin reform:
• Improve the federal budgeting process and the controls over it.
• Raise the level of transparency and accountability of the government by better financial reporting, and create performance measures to see how the country is performing.
• Begin a serious debate on the role of the federal government to bring changes for the century ahead.
Walker said inaction is not an option.
"The baby boom generation, of which I am a member, is on track to be the first generation in the history of this country not to leave this country better positioned for the future.
"That is unacceptable to me and my panelists. And we are going to do everything that we can to try to make sure that that changes."
August 19, 2006
By BRAD SCHRADE
Staff Writer
The future of the nation is in peril because of an unsustainable economic model, and Washington's partisan warriors lack the leadership and political courage to do anything about it, the U.S. comptroller general told a group of state lawmakers in Nashville Friday.
Americans must hold their leaders accountable for deficit spending and irresponsible political decisions, said Comptroller General David M. Walker, a trained accountant who is the nation's chief accountability officer.
If major charges aren't brought about, Americans' children and grandchildren will inherit a nation that is financially and socially broken, Walker said.
Deficit spending and the structural problems facing Medicare, Medicaid and Social Security will bankrupt the nation unless substantive reforms are made. Additional tax revenues and major changes to those entitlement programs are required to reverse the disastrous path Washington is leading the country down, Walker said.
The fiscal exposure the nation faces amounts to $46.4 trillion, Walker said, or approximately $411,000 per household.
"Anybody who tells you, Republican or Democrat, that we can grow our way out of this problem, number one is not telling you the truth and, number two, probably flunked math," Walker said. "Any Republican who tells you that we can solve our problem, or Democrat, without raising revenues isn't telling you the truth.
"Any Democrat or Republican that tells you we don't need to reform Social Security or Medicare is not telling you the truth. It's time they be held accountable. This is not a partisan issue. This is about the future of our country and about the future of our families. And it is a serious problem."
Walker made his comments on the closing day of the National Conference of State Legislatures being held this week at the Gaylord Opryland Resort & Convention Center.
He was part of a panel titled "Wake Up! The Federal Fiscal House is Falling," a group of economists and analysts from all political parties traveling the country to raise awareness of what they say is the most serious problem facing America.
All members of the panel agreed that the status quo will not work anymore.
The nation is perched on a major demographic bubble as the baby boomer generation begins to retire in the next few years.
As that occurs, it will place tremendous strain on these social programs, particularly Medicare, which most threatens the nation's financial health. There was also general agreement that the political climate in Washington has both political parties sticking their heads in the sand.
"Political parties are unwilling to make tough choices," said former Democratic congressional staff member Diane Lim Rogers, an economist who is now with the liberal think-tank Brookings Institution. "I saw this working on the Ways and Means Committee."
Brian Riedl, a policy analyst with the conservative think-tank Heritage Foundation, said economic experts from both political parties look at the long-term forecasts and come to the same conclusion: The system as it stands must be changed.
"It's not liberal versus conservative," Riedl said. "It's politicians versus economists and analysts."
Walker is the best known among the group. He has been speaking for several years trying to raise the level of debate on the pending problem.
As comptroller general, his office gives him a special perch in Washington to speak out without fear of losing his job. He is appointed to a 15-year term and heads the Government Accountability Office, a non-partisan, independent agency "that works for Congress and the American people," according to its Web site.
Walker outlined three ways to begin reform:
• Improve the federal budgeting process and the controls over it.
• Raise the level of transparency and accountability of the government by better financial reporting, and create performance measures to see how the country is performing.
• Begin a serious debate on the role of the federal government to bring changes for the century ahead.
Walker said inaction is not an option.
"The baby boom generation, of which I am a member, is on track to be the first generation in the history of this country not to leave this country better positioned for the future.
"That is unacceptable to me and my panelists. And we are going to do everything that we can to try to make sure that that changes."
posted by HRM Deborah of Israel and the Messenger of Peace at 8:29 PM
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