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| Thought Leaders: Policy |
Calling All Czars
David M. Walker
03/01/2007
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A crisis of leadership exists in
this country, and affluent Americans are in a position to help—both by speaking
up and by leading and financing efforts to put us on a more prudent and
sustainable fiscal path.
It is a well-known (but largely unspoken) truth that our
country is deeply in debt—and that this growing indebtedness threatens to
undermine our ability to address emerging challenges we will face in the 21st
century and, likewise, to capitalize on related opportunities The estimated
future burden for U.S. taxpayers—taking into account both Social Security and
Medicare benefits and potential obligations associated with government entities
such as the Pension Benefit Guaranty Corp. and the National Flood Insurance
Program—has soared from approximately $20 trillion in 2000 to approximately $50
trillion in 2006. This translates to an obligation of roughly $440,000 for every
household in the United States, a country in which the median household income
is less than $50,000.
At both ends of Pennsylvania Avenue and on both sides of the
political aisle, we are going to need more men and women who are prepared to
face the facts, speak the truth, work together and make tough choices that are
in our collective best interest. So far, however, there have been too few calls
for fundamental changes and shared sacrifice. Our government’s recent lack of
budget discipline has not helped the matter. Out-of-control federal spending and
several large tax cuts have combined to return federal deficits with a
vengeance. By 2040, to effectively close the gap, the government will have to
raise taxes through the roof or be forced to slash many programs U.S. citizens
now take for granted—not just entitlements, but also national parks, the
interstate highway system and medical research.
Power often accompanies great wealth, which places prosperous
Americans in a unique position to lead an effort to turn things around. Clearly,
many entrepreneurs have contributed positively to our society by providing jobs
and creating vital goods and services. But this country also has a proud history
of having private citizens who care deeply about the future of their communities
and their nation alike. These individuals have passed on a remarkable legacy
through the creation of schools, libraries, hospitals, museums and foundations.
Through their actions, these benefactors showed that they understood the true
meaning of stewardship: to leave things better off for future generations. Yet,
baby boomers who-have enjoyed some of the greatest educational and economic
advantages—are on course to become the first generation of Americans to leave
things in worse shape than when they found them.
Upright Citizens
The first order of business is to restore fiscal discipline. We
need to impose meaningful budget controls on both the spending and the tax sides
of the ledger. Government transformation is also essential. Too many of today’s
government policies are based on social, economic, national security and other
conditions prevalent in the 1950s and 1960s. We need nothing less than a
top-to-bottom review of these federal activities. The president and Congress
should decide which programs and policies remain priorities, which ones should
be overhauled, and which ones have simply outlived their
usefulness.
To get us started toward these end goals, we should establish a
bipartisan commission to address entitlements, taxes, healthcare and other areas
in sore need of reforms; commissioners would then make recommendations to
policymakers based on the findings of the group. We need prominent individuals,
those who have ideas that could not be ignored, to populate this assembly much
like the Iraq Study Group chaired by James H. Baker and Lee Hamilton. Such a
commission could help make fiscal discipline and government transformation
national priorities.
Yet government commissions comprise only a part of the
solution. Through their involvement at foundations, charities, universities and
other nonprofit groups, affluent individuals can help promote citizen education
and constructive engagement. They can underwrite research and develop
innovative, fiscally responsible solutions in such areas as education, energy,
immigration and transportation. A few thoughtful reforms, phased in over a
period of time, could do a great deal to address the fiscal problems of this
country. If we wait until a crisis is upon us, however, we will have far fewer
options—and they will be far harsher.
 David M. Walker is the comptroller general of the United States. | |
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