September 30, 2014

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Friday, January 16, 2009 - 12:57 PM

Today’s Washington Post contains a very welcome front-page headline, “Obama Pledges Entitlement Reform.” The article explains that President-elect Obama plans to convene a fiscal responsibility summit in February. According to the Post story:

President-elect Barack Obama pledged yesterday to shape a new Social Security and Medicare "bargain" with the American people, saying that the nation's long-term economic recovery cannot be attained unless the government finally gets control over its most costly entitlement programs.

That discussion will begin next month, Obama said, when he convenes a "fiscal responsibility summit" before delivering his first budget to Congress. He said his administration will begin confronting the issues of entitlement reform and long-term budget deficits soon after it jump-starts job growth and the stock market.

"What we have done is kicked this can down the road. We are now at the end of the road and are not in a position to kick it any further," he said. "We have to signal seriousness in this by making sure...

Tuesday, January 13, 2009 - 5:34 PM

There’s news from the Treasury Department today (monthly Treasury statement) on the federal budget deficit for the first quarter of fiscal year 2009 (i.e., 4th quarter of calendar year 2008). I guess this is what a year headed for a (way?-)more-than-a-trillion-dollars deficit looks like; AP reports:

The federal government already has run up a record deficit of $485.2 billion in just the first three months of the current budget year, the Treasury Department said Tuesday.

The deficit is on track to surpass $1 trillion for all of fiscal 2009 and some economists believe it could go much higher.

The deficit for December totaled $83.6 billion, a sharp deterioration from a year ago when the government managed a surplus of $48.3 billion…

All the red ink is occurring because of the massive spending on the $700 billion financial rescue program and a prolonged recession which has depressed tax revenues.

The imbalance from October through December is the highest on record for a first quarter and surpasses the...

Friday, January 9, 2009 - 4:36 PM

Fresh off its appearance as one of five documentaries competing for a Critics Choice Award last night, I.O.U.S.A. will air on CNN two times this weekend.

Accompanying clips of the film will be a panel of experts discussing the movie in greater detail as well as its relevance to the current economic crisis. The event will be moderated by Ali Velshi and Christine Romans, hosts of "Your $$$$$." The panel guests will include Concord Coalition President Peter Peterson, former U.S. Comptroller General David Walker, former Office of Management and Budget Director Alice Rivlin, and former U.S. Senator Bill Bradley. 

The program will be shown Saturday, January 10, 2009 at 2:00 PM EST and Sunday, January 11, 2009 at 3:00 PM EST.

For those of you whose football team missed the NFL playoffs (like my Tampa Bay Bucs) and enjoy winners (like my Florida Gators and this documentary film), this should be worthwhile television.

--Josh Gordon

Thursday, January 8, 2009 - 9:54 PM

This week we've heard more about what's likely to be in the mix in the next economic stimulus/recovery package.  We've learned that there are more tax cuts in the picture—this despite the skepticism expressed over the past few months about how effective another round of tax cuts would be in boosting consumption, given the already-mediocre marks  many economists gave them the last time around, and the current state of American consumers, who are now less than enthusiastic about even being labeled ”consumers.”

A Wall Street Journal story breaking the news about $300 billion of new tax proposals found surprise among some experts:

William Gale, a tax-policy analyst at the Brookings Institution think tank in Washington, said the scale of the whole package is larger than expected. He called the business offerings a true surprise, since most attention has been focused on the spending side of the equation, especially the hundreds of billions of dollars being discussed for infrastructure and aid to state and...

Wednesday, January 7, 2009 - 3:17 PM

The big story today is that the non-partisan Congressional Budget Office updated their baseline estimate for the federal budget's ten-year outlook. Our analysis, based on their most recent data, shows that current policy trends could add $10.295 trillion to the national debt from 2010-2019. Note that the current national debt is $10.6 trillion, so this would double that in just 10 years!

The other big news from the CBO baseline release today is that they project this year's budget deficit (Fiscal Year 2009) will be $1.186 trillion (more than double the prior single year dollar record) or 8.3% of GDP--a post World War II high.

For over a decade, the Concord Coalition has taken CBO's estimates and made changes in order to produce a more "plausible" estimate based on current policy trends. These baselines are important tools on which to evaluate how proposed legislation effects the budget. Our press release today about the new CBO report and our analysis can be found here. For more information on Concord's plausible baseline...

Tuesday, January 6, 2009 - 3:12 PM

To start out the new year, I want to call attention to a recent Washington Post Op-Ed by Neil Howe and Richard Jackson, the editors of the Concord Coalition's Facing Facts Quarterly.

The editorial highlights one of the fundamental problems the Concord Coalition was formed to call attention to--the aging of the population. Population aging is a function of longer life expectancy and lower birthrates. It is a phenomenon that tends to occur in countries throughout history as the economy in that country gets wealthier and more developed. The problem is that it is also correlated with declining economic growth as workforce participation eventually declines. There is even a suggestion in some research that this phenomenon is the number one explanatory factor when looking at the success of economic systems throughout history.

The Concord Coalition's primary concern with the aging of the population is that its resulting lower economic growth in the future will occur at the same time that the nation's entitlement programs, which are designed to provide benefits to retirees, will swell in size--increasing the burden on working age citizens. Furthermore, irresponsible...

Friday, December 19, 2008 - 5:34 PM

Many of you have heard about the documentary movie I.O.U.S.A. For this blog post, I would like to borrow just the first three letters of this catchy title as I thank the wonderful Concord Coalition volunteers of the Midwest: I.O.U.

Since I began working as the Midwest Regional Director for the Concord Coalition in July 2008, I have continuously been impressed with the vigor and enthusiasm demonstrated by citizens and professionals of the great Midwest who volunteer for The Concord Coalition and those who offer their support of our initiatives in their community, state, and across the nation. To each of you: I.O.U.!  I owe you many thanks and want to publicly recognize your contributions to Concord and to my work for Concord in the field.

Let me provide Tabulation blog readers a few examples of the outpouring of participation and interest I’ve received in my Midwest region to illustrate why I.O.U.:

  • An Illinois professional has decided to give his time, expertise, and money to The Concord Coalition in 2009. In his own words:  “I am increasingly alarmed by the growing unrecognized governmental indebtedness at all levels, and believe it is now my time to try to devote some serious...

Monday, December 15, 2008 - 3:15 PM

Although the report doesn’t speculate on the size of the potential cost savings that could be obtained from some of the reform proposals (most of which are not terribly comprehensive or economically “bold”–although elimination of the employer-provided health care tax exclusion would surely be politically “bold”), I found the discussion on pages 118-119 of the health care chapter most interesting:

Spending a rising share of income on health, as has occurred in the United States and other developed countries and is likely to continue occurring, makes economic sense as rising incomes increase the relative benefits of investing in health-care consumption to extend life…[H]ealth care consumption is a superior good…The large and growing size of health spending underscores the importance of ensuring that the sector functions efficiently and equitably.

Today I spoke at an event on Capitol Hill where the OECD’s Economic Survey of the United States was released.  (The policy brief, a condensed summary, is here.)  I was a discussant on the survey’s chapter on health care reform, which explains that the U.S. health...

Tuesday, December 9, 2008 - 1:20 PM

A few weeks back we had our annual Economic Patriot Award Dinner, and among the short list of speakers (which included award recipient New York City Mayor Michael Bloomberg) was Yoni Gruskin, Executive Director of the youth advocacy group, Concerned Youth of America (CYA). A sophomore from The University of Pennsylvania, he gave an inspired and inspiring address that spoke to the timelessness of partiotism and an honest sense of American stewardship shared across generations. 

Whether its a new face, or the true face, Yoni put a good face on the idea of "youth outreach." Where many once read the term to mean an empowered generation of elders shaking up the silent and disaffected youth, this dynamic leader, not long out of highschool, redefined it as the youth reaching out to their seniors as if to say, "We're here, we've been listening, and we mean serious business." The enthusiasm and profesionalism of Yoni, his colleagues at CYA, and his peers at other youth organizations rising up around the country, all give us at Concord great comfort as the generation with the most at stake takes matters into their own hands. 

Check out a clip of his speech below.

--Stefan Byrd-Kreuger

... Read More
Thursday, December 4, 2008 - 1:42 PM

Executive Director Bob Bixby has a timely (in light of today's Congressional hearings) Op-Ed in this morning's Washington Post that analogizes congressional pressure on the big three automakers to come up with a sustainable, long-term business model, to the pressure that should be put on Congress to come up with a similarly forward-looking plan for the federal budget.

Here are some excerpts:

After hearings last month to consider the plight of the Big Three automakers, Congress's warning was clear: no plan, no bailout. It was a tough-love message, but it rang a bit hollow coming from lawmakers who have no plan of their own to avoid a fiscal debacle that could be many times more serious than anything the automakers face...

In these circumstances, it is worth asking what might be demanded of Congress by a special guardian appointed to safeguard the interests of today's youth. A good place to start is the letter written to the automakers by House Speaker Nancy Pelosi and Senate Majority Leader Harry M. Reid...

Pelosi and Reid...