While the eyes of our federal leaders and the media have been focused on the war in Ukraine, the armed conflict between Israel and Hamas, the southern border, the related protests and uprisings on college campuses, and the multiple trials concerning a former president, little is being done to address the greatest threat to our economic and national security: our mounting national debt burdens.
Washington’s profligate spending practices and inaction on the Fiscal Commission Act and HCR 24 are increasing the risk of a federal fiscal crisis. Our congressional representatives are too focused on today and the next election rather than the steps to create a better future. Their myopia and focus on their personal job security and political party status blind them to the long-term consequences of their decisions. Our country has lost its sense of stewardship, and it is time that “we the people” wake up and pressure our lawmakers to regain it before it is too late.
As a former U.S. comptroller general and public trustee of Social Security and Medicare, I have scrutinized an abundance of federal financial data over the years. Looking at our country’s current financial position and projected fiscal outlook, I can tell you that we are headed for a fiscal crisis like we have never seen before if we do not change course.
All major federal fiscal and monetary agencies have echoed this for years, and now, the International Monetary Fund, selected ratings agencies, and major business leaders are joining the chorus. Excessive government spending, skyrocketing deficits, and ballooning debt burdens have become the norm, and it is only getting worse.
Our mounting national debt is just the tip of the iceberg. Total federal liabilities and unfunded social insurance obligations exceeded $120 trillion as of Sept. 30, 2023, and they are growing much faster than the economy. The truth is the federal government has grown too big, promised too much, subsidized too many, and lost control of the budget and is not managed to achieve real results.
Washington has become addicted to spending, deficits, and debt. Politicians continue to charge the nation’s credit card and expect younger and future generations to pay the bill. That is irresponsible, unethical, and downright immoral. While we have not yet reached the point of no return as a country, only God knows when the debt bomb will explode. Congress needs to tackle the problem now, and it is our job as citizens to pressure our legislators to do the work necessary to restore fiscal sanity and sustainability in Washington.
Washington must take four key steps to create a better future. First, we must adopt pro-growth policies designed to reduce the debt-to-GDP ratio, the “barometer” of our country’s financial health, to a reasonable and sustainable level.
Second, substantial reforms to vital social insurance programs such as Social Security and Medicare are necessary to ensure their solvency and sustainability. Doing nothing will result in significant cuts to these programs in less than 10 years.
Third, reprioritizing and reducing prospective federal spending, including revising allocations for national defense without compromising national security, is essential.
Finally, a comprehensive overhaul of the tax system is needed to simplify its structure, promote fairness, enhance enforcement, and boost revenue as a percentage of GDP. Everything needs to be on the table, but not all things are equal.
Based on my extensive citizen education and engagement experience spanning 47 states and Washington, I know that people are willing to accept tough choices, provided they are part of a goal-based plan that is rooted in principles and values that bring people together rather than dividing them. Public education and engagement are essential to motivating our leaders to act.
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The bipartisan House Fiscal Commission Act is designed to do this and set the table for an up-or-down vote in Congress. HCR 24 is designed to shed light on Congress’s failure to call a convention of states to propose a federal fiscal responsibility amendment since 1979. Since that time, federal debt has soared from less than a trillion dollars to almost $35 trillion, and the dollar has lost almost 80% of its value. These are some of the consequences of failing to act.
We must be intentional about understanding the country’s fragile finances and learn the lessons of other great powers that failed to act. Washington must take decisive action on these long-standing financial challenges that threaten our country, children, grandchildren, and future generations. We have a stewardship responsibility to leave them a nation that is better off and better positioned for the future.
David M. Walker is a former comptroller general of the United States and a member of the advisory board of Main Street Economics.