I.O.U.S.A. (14 page)

doesn’t have even

corner and we put it up over the entrance to the IRS, which we
spaces to show

thought was very appropriate.

$10 trillion.

“ The clock we had during the Clinton presidency could not run backwards so we covered it up with an American fl ag.

This new clock will be able to run backwards. Hopefully, we ’ ll get to a point where we can do that. ”

The Real Pain

When the Fiscal Wake - Up Tour hit Ames, Iowa, in July 2007, we met up with David Yepsen, a political columnist with the
Des Moines Register.

“ The most important issue in the election is Iraq, ” says Yepsen, “ but [the state of the nation ’ s balance sheet] is really the most important issue facing the country. But why should we care? Isn ’ t this money we basically owe to ourselves? What ’ s the effect of all this?

“ We are talking about running defi cits and compiling debt burdens at a rate that is clearly unsustainable, ” David responds,

“ that will threaten our future economic growth, will threaten our future standard of living, and could potentially threaten our national security if we don ’ t do something about it.

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Chapter 2 The Budget Defi cit
41

“ There are no good solutions, ” Yepsen comments. “ You ’ re talking about raising some taxes, cutting some spending, maybe reinfl ating the economy. No matter where you turn, there ’ s nothing but painful solutions, there ’ s no easy way out of it, and so candidates are reluctant to talk about these ideas for fear they ’ re going to make people mad. It ’ s going to take a crisis before America responds to this.

“ This is America. We don ’ t do anything until something reaches a crisis, whether it ’ s military rearmament before World War II or this question now. We ’ re not going to be willing to take this pain until it gets to be a real problem. ”

While the “ real ” pain Mr. Yepsin refers to isn ’ t quite here, we ’ ve seen over the life of this project an increasing level of anxiety over gas and food prices, employ-

This is America. We don’t do any-

ment opportunities, and the sagging
thing until something reaches a
stock market. The anxiety over the
crisis, whether it’s military rearma-economy immediately spills over
ment before World War II or this
into the political arena. Consumers,
question now. We’re not going to
accustomed to easy credit conditions
be willing to take this pain until it
and low prices, begin to ask tough
gets to be a real problem.

questions of their elected offi cials.
—DAVID YEPSEN,
DES MOINES REGISTER

They expect answers.

Solutions

On the budget front, there are several things leaders in the government of the United States need to do to fi x the current budget defi cit problem. First, Congress needs to bring back tough budget controls, like those in the 1990s. For example, between 1991 and 2002, members of Congress imposed on themselves so

- called

“ pay - go ” rules which required them

to pay for every spending increase before it was enacted into law. Those rules expired in 2002. Since 2002, spending increases have gone unchecked. The nation has seen an historic rise in its federal budget defi cits and the national debt has skyrocketed.

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42 The

Mission

Second, Congress needs to address the long - term fi nancial imbalances by reforming the current Social Security, Medicare, and Medicaid programs. “ We can ’ t afford to pay our bills now, ” says Kent Conrad, the leading Democrat of the Senate Budget Committee. “ What ’ s going to happen when these entitlement bills come due? ”

Third, federal spending needs to be constrained. America ’ s federal government has grown more quickly in recent years than it has over the past several decades. The country needs to engage in comprehensive health care reform, which will assure that the biggest future expense for America ’ s medical expenses don ’ t continue to grow out of control.

Lastly, comprehensive tax reform is necessary to insure that there are adequate tax revenues to pay the government ’ s bills and deliver on the promises the U.S. government plans to keep.

It goes without saying that all of these solutions are highly charged politically. Addressing the long - term fi scal challenges of the country will only be successful if both parties can put aside their differences and work toward a common goal.

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