Posted on 04/06/2007 1:05:28 PM PDT by truth49
Imagine you were told that federal revenues increased by $255 billion in 2006. Now suppose that before you could reach for the party hats and streamers, you learned that during the same time period the federal government spent $450 billion more than it received in revenues. Even before this grim reality sets in, let’s say you also learned that the federal government’s total fiscal exposures, including promised entitlements, have grown to more than $50 trillion.
With these facts in hand, would you say America is facing a revenue problem or a lack of fiscal discipline?
This is a question that all Americans need to answer and answer now.
It’s also an issue the nation’s top auditor, U. S. Comptroller General David Walker, is desperately trying resolve while there are still options.
Consider the following comments from the comptroller’s recent testimony in Congress:
"The federal government’s fiscal exposures now total over $50 trillion, representing close to four times the gross domestic product (GDP) in fiscal year 2006 and up from about $20 trillion, or two times GDP in 2000. We all know that it is hard to make sense of what “trillions” means. One way to think about it is if we wanted to put aside today enough to cover these promises, it would take about $440,000 per American household, up from $190,000 in 2000. Clearly, despite recent progress on our short-term deficits, we have been moving in the wrong direction in connection with our long-range imbalance in recent years.
As members of this Subcommittee know, continuing on our current fiscal path would gradually erode, if not suddenly damage, our economy, our standard of living, and ultimately even our domestic tranquility and national security. Many of the federal government’s current policies, programs, functions, and activities are based on conditions that existed decades ago, are not results-based, and are not well aligned with 21st century realities."
So how does the comptroller recommend we address this problem?
"There is a need to engage in a fundamental review, reprioritization, and reengineering of the base of government. Understanding and addressing the federal government’s financial condition and long-term fiscal imbalance are critical to maintain fiscal flexibility so that we can respond to emerging social, economic, and security challenges."
Bottom line, the federal government needs to do the same thing we’ve been trying to get the state of Washington to do: use priorities of government budgeting.
Beyond scrubbing the federal budget and basing expenditures on prioritized outcomes, the real key to our nation’s economic health is staring us in the mirror every morning.
As much as we may want to place the blame for the nation’s fiscal woes on those “dirty dogs” in D.C., the real responsibility and culpabilities rest with voters. If the American people stop demanding excess spending, elected officials will stop bringing home the bacon and hopefully spend more time on the core functions of government.
The status quo is not an option.
We must remember that failure to take action now ultimately means that politicians and voters will continue to cash checks today our children and grandchildren will be forced to pay for tomorrow.
How about we make alternative energy a national priority, save about a trillion a year in importing oil and start being an exporter to the tune of 2 trillion. The multiplication of the tax revenue/investment/jobs would multiply the amount of this number a few times over spread across two decades. This won’t happen for the same reason financial discipline won’t happen in Washington and that is because our leaders have become extreordinarily self-centered as people, just as the voters have. Kennedy had it right, “ask not what your country can do for you but what you can do for your country”. Any house divided itself will fall. Greed is causing our country to become divided.
msg. true, but so 'old hat'; jus not a 'sexy' news item...Pres. Bush and pubbie part of Congress need a scolding.
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