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IssuesLong-term projections from nonpartisan government analysts at the Congressional Budget Office (CBO) and the Government Accountability Office (GAO) show that current federal budget policies are unsustainable. The bottom line is stark. Unless we change course, widening federal deficits will eventually starve the economy of critical savings and shortchange investments for our children's future well being. No country can enjoy sustained living standard growth without investing, and no country can sustain high investment for long without saving. The problem with deficits is that they soak up national savings and crowd out productive investment. Since America's savings pool is shallow, the impact of large deficits is especially harmful. The U.S. net national savings rate is already low both relative to other developed nations and to our own history. Current fiscal policies are due to push net national savings still lower, ultimately driving it beneath zero. Let's hope that we don't have to suffer a fiscal and economic crack up before
changing direction. The time to act is now, while people still have time to
adjust and prepare--not ten years from now, when the trade-offs will be all the
more painful. This is the last decade before the age wave rolls over the budget.
Our elected leaders should make sure it's not a lost decade. It wasn't that long ago that our budget was in balance, and it looked like we would run surpluses for the next several years. Those days are over with only deficits on the horizon. The retirement of the baby boomers will tax our already overstressed public finances, and only careful financial planning will allow us to deal with these problems in an organized and fair manner. (Read More) National DebtEvery dollar of debt is a dollar that our children will see in higher taxes, decreased spending, or reduced economic growth. It is a dollar of hard choices that we as a nation failed to make. We've accumulated trillions of these dollars, and the time to stop procrastinating is here. (Read More) Social SecuritySocial Security is our nation's largest and most popular public program. For years it has helped reduce elderly poverty. Unfortunately, its financial situation will worsen beginning in 2009. (Read More) Medicare & MedicaidOur nation's two largest public health insurance programs face major financial hurdles. While many like to talk about Social Security, demographic changes, reduced workplace health benefits, and medical innovations make these programs the ones to watch. (Read More) Facing Facts QuarterlyOur quarterly publication with in-depth information on a variety of fiscal policy issues. (Read More) Congressional ScorecardEver wonder how fiscally responsible your elected representative is? Our scorecard rates every member of each Congress to find out who made -- or failed to make -- the tough choices. (Read More)Fiscal Responsibility Report CardFiscal prudence, by its very nature, requires careful consideration and hard choices between different spending and taxation priorities. Every year we issue an update on how the President and Congress (as a whole) are doing in making responsible choices for the short, medium, and long term. (Read More) |
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