Fiscal Warning Issued by Presidential Commission
Action is needed to cut spending and increase revenues.
Compiled by staff
Published: Jul 13, 2010
During the National Governors Association closing session Sunday, Erskine Bowles, White House chief of staff under President Bill Clinton, warned fiscal calamity is staring the country in the face. He called the national debt a cancer that will destroy the country from within unless checked by tough action in Washington. Bowles and former Senator Alan Simpson, R-Wyo., serve on President Obama's debt and deficit commission.
The commission leaders pointed out that at present federal revenue is fully consumed by three programs: Social Security, Medicare and Medicaid. According to Simpson the rest of the federal government, including fighting two wars, homeland security, education, art, culture, you name it, is being financed by China and other countries. Bowles said the only way out is to cut spending or increase revenues or do some combination of that.
Simpson also warned that Election Day will be disruptive. He added it's going to be a big wake-up call around the whole United States. Admitting he has no idea where it's going he says it's a good thing they'll have a month to work through the wreckage.
Permalink: Click here
|