The last several slides are new to this briefing.
David M. Walker, comptroller general of the United States, at the 2008 Economic Forecast Forum:
The federal government is on a “burning platform,” and the status quo way of doing business is unacceptable.
Growth in Spending for Social Security, Medicare, and Medicaid Expected to Outpace Economic Growth; State and Local Governments Face Increasing Fiscal Challenges.
Current Fiscal Policy Is Unsustainable:
• The “Status Quo” Is Not an Option
• We face large and growing structural deficits largely due to known demographic trends and rising health care costs.
• GAO’s simulations show that balancing the budget in 2040 could require actions as large as
• Cutting total federal spending by 60 percent or
• Raising federal taxes to two times today's level
• Faster Economic Growth Can Help, but It Cannot Solve the Problem
• Closing the current long-term fiscal gap based on reasonable assumptions would require real average annual economic growth in the double-digit range every year for the next 75 years.
• During the 1990s, the economy grew at an average 3.2 percent per year.
• As a result, we cannot simply grow our way out of this problem. Tough choices will be required.
Are the candidates confronting this issue? Mostly they seem to ramble on about "coverage."
