Published: Sunday, May 18, 2008
GUEST COMMENTARY
When America needs leadership, it gets pandering
Hearing the three remaining major presidential candidates on both sides of the political aisle pledge to grant new tax cuts and create new spending programs makes me even more concerned about America's future. Recent pandering to voters by offering short-term tax relief due to high energy and food prices merely reinforces a short-sighted, "politics as usual" approach.
In more than 50 town hall meetings across the United States, I've heard time and time again: the American people are starved for truth and leadership when it comes to our nation's fiscal and other key sustainability challenges. So far, the presidential candidates are failing to meet the need for true leadership in this regard.
When I started work as comptroller general of the United States in 1998, we were on the path to budget surpluses. Fast forward 10 years, and we have learned first-hand how deficits can explode when budget controls are not in place. After the statutory controls expired in 2002, federal spending accelerated, entitlement programs expanded, and tax cuts became the cry of the day.
The result: America is now in a $53 trillion fiscal hole that gets deeper each year for lack of action. Furthermore, our nation's financial health, which has weakened considerably in recent years, is about to get much worse.
Earlier this year, our own U.S. Treasury Department declared that the federal government is on an unsustainable fiscal path. Judging from their recent statements on the campaign trail, our presidential candidates haven't studied the nation's latest financial report or fiscal projections.
Sen. John McCain has proposed to extend the Bush tax cuts. Unfortunately, he has not yet provided a credible plan to pay for these actions.
At the same time, Sens. Barack Obama and Hillary Rodham Clinton are pledging to expand health care coverage, and to pay for it by declining to extend certain Bush tax cuts. The truth is, the cost of achieving universal health coverage will far exceed the revenue obtained in this manner.
Recent proposals to address rising energy and food prices by all three candidates focus on short-term symptoms rather than long-term cures. The related plans by Sens. McCain and Obama would only make our exploding deficit worse. Sen. Clinton has proposed to pay for her plan through a "windfall profits tax" on energy companies.
These and other proposals serve to reinforce America's myopia and poor global ranking in math proficiency. These deficiencies can have catastrophic consequences over time when our nation's leaders can't or won't calculate the impact of their proposals on our nation's bottom line!
I have always believed that the American people must lead the charge for fiscal responsibility, rather than wait for Washington to act. After all, Washington is a "lag indicator" and traditionally delays acting until a crisis forces action. Most politicians want to keep their "jobs" and are not willing to make tough choices that may be unpopular with large numbers of voters.
My belief in the public's potential spurred me to launch a "Fiscal Wake-Up Tour" along with leaders from the Concord Coalition, the Brookings Institution and the Heritage Foundation. Over the past two-plus years, the tour has stopped in about 40 cities in more than half the states and is still going strong. Indeed, it's the subject of the critically acclaimed documentary, I.O.U.S.A., scheduled for commercial release this summer in time for the general election campaign.
What have we discovered during our travels? The American people are desperate for substance and solutions. But will the presidential candidates deliver?
Consider just three facts supplied by the Treasury Department in the nation's most recent financial report:
n In 2007, Medicare Part A (hospital insurance) benefit payments began to exceed the program's tax revenue;
n By 2017, Social Security benefit payments will begin to exceed the program's tax revenue; and,
n As of January 2007, the nation's total liabilities and unfunded Social Security and Medicare promises amounted to nearly $53 trillion, or $175,000 per American.
So far, none of the major presidential candidates are even acknowledging our $53 trillion fiscal hole, which will grow by at least $2 trillion a year even if we balance the budget. Worse yet: our red ink, debt burdens and reliance on foreign lenders are increasing, and are set to skyrocket in the near future when boomers retire in big numbers.
While an informed public is ready to support a comprehensive and equitable action plan in Washington, most politicians are still punting -- and pandering. The time for true leadership to help keep America great is now!
David M. Walker recently keynoted Washington Policy Center's 2008 Government Reform Conference in Seattle. Walker is president and CEO of the Peter G. Peterson Foundation and former comptroller general of the United States. For more information visit www.washingtonpolicy.org or call 206-937-9691.
In more than 50 town hall meetings across the United States, I've heard time and time again: the American people are starved for truth and leadership when it comes to our nation's fiscal and other key sustainability challenges. So far, the presidential candidates are failing to meet the need for true leadership in this regard.
When I started work as comptroller general of the United States in 1998, we were on the path to budget surpluses. Fast forward 10 years, and we have learned first-hand how deficits can explode when budget controls are not in place. After the statutory controls expired in 2002, federal spending accelerated, entitlement programs expanded, and tax cuts became the cry of the day.
The result: America is now in a $53 trillion fiscal hole that gets deeper each year for lack of action. Furthermore, our nation's financial health, which has weakened considerably in recent years, is about to get much worse.
Earlier this year, our own U.S. Treasury Department declared that the federal government is on an unsustainable fiscal path. Judging from their recent statements on the campaign trail, our presidential candidates haven't studied the nation's latest financial report or fiscal projections.
Sen. John McCain has proposed to extend the Bush tax cuts. Unfortunately, he has not yet provided a credible plan to pay for these actions.
At the same time, Sens. Barack Obama and Hillary Rodham Clinton are pledging to expand health care coverage, and to pay for it by declining to extend certain Bush tax cuts. The truth is, the cost of achieving universal health coverage will far exceed the revenue obtained in this manner.
Recent proposals to address rising energy and food prices by all three candidates focus on short-term symptoms rather than long-term cures. The related plans by Sens. McCain and Obama would only make our exploding deficit worse. Sen. Clinton has proposed to pay for her plan through a "windfall profits tax" on energy companies.
These and other proposals serve to reinforce America's myopia and poor global ranking in math proficiency. These deficiencies can have catastrophic consequences over time when our nation's leaders can't or won't calculate the impact of their proposals on our nation's bottom line!
I have always believed that the American people must lead the charge for fiscal responsibility, rather than wait for Washington to act. After all, Washington is a "lag indicator" and traditionally delays acting until a crisis forces action. Most politicians want to keep their "jobs" and are not willing to make tough choices that may be unpopular with large numbers of voters.
My belief in the public's potential spurred me to launch a "Fiscal Wake-Up Tour" along with leaders from the Concord Coalition, the Brookings Institution and the Heritage Foundation. Over the past two-plus years, the tour has stopped in about 40 cities in more than half the states and is still going strong. Indeed, it's the subject of the critically acclaimed documentary, I.O.U.S.A., scheduled for commercial release this summer in time for the general election campaign.
What have we discovered during our travels? The American people are desperate for substance and solutions. But will the presidential candidates deliver?
Consider just three facts supplied by the Treasury Department in the nation's most recent financial report:
n In 2007, Medicare Part A (hospital insurance) benefit payments began to exceed the program's tax revenue;
n By 2017, Social Security benefit payments will begin to exceed the program's tax revenue; and,
n As of January 2007, the nation's total liabilities and unfunded Social Security and Medicare promises amounted to nearly $53 trillion, or $175,000 per American.
So far, none of the major presidential candidates are even acknowledging our $53 trillion fiscal hole, which will grow by at least $2 trillion a year even if we balance the budget. Worse yet: our red ink, debt burdens and reliance on foreign lenders are increasing, and are set to skyrocket in the near future when boomers retire in big numbers.
While an informed public is ready to support a comprehensive and equitable action plan in Washington, most politicians are still punting -- and pandering. The time for true leadership to help keep America great is now!
David M. Walker recently keynoted Washington Policy Center's 2008 Government Reform Conference in Seattle. Walker is president and CEO of the Peter G. Peterson Foundation and former comptroller general of the United States. For more information visit www.washingtonpolicy.org or call 206-937-9691.
Comments
(