Fiscal Responsibility
Belle Sawhill - Page 3
Her comment was met with laughter but the truth of the matter is not very funny. Belle says there are four reasons why the Federal deficit matters. First is dependence on foreigners. "About half of our publicly held national debt is owned by foreigners. Most of the new borrowing that we are doing is from foreigners often from central banks. That is putting us in a very vulnerable position."
"The second problem with deficits is they bring with them a larger and larger national debt," Belle continues. "Each year's deficit adds to the debt and we have to pay interest on that debt. Those interest costs are a very large part of the budget now. When you send your tax dollars to Washington, you probably think you're paying for the war in Iraq, education, highways and a whole variety of other things. How many people know that one out of every five of their income tax dollars is going just to pay interest on the debt? That number is going to go up much higher in the future."
The third reason is the burden that deficits and the ever growing national debt puts on future generations, which is where she used her grandson and his golf balls as an example. Lastly we need to worry about deficits because it constrains our ability to invest in our future or to deal with unforeseen contingencies. "Suppose there is a flu epidemic and we need to spend money on that. Suppose there is a new international crisis. Suppose you think we should be investing more in education or reducing global warming or in being the first in the world in science and technology. We do not have the resources to do those things now. And most importantly, it is a certainty that because of the retirement of the baby boomers we are going to have massive costs in the future for Social Security, Medicare, and that's going to require that we get started now in putting our fiscal house in order. So we will be better prepared to address the retirement of that group when the time comes."
Preparing for the future is what Belle Sawhill and economists like her are all about. Don't be afraid of the future, look into the future and plan for the future. "For too many people deficits are a very abstract concept," says Belle. "If we are going to be successful, we are going to have to convince a lot more people that this does matter to our future as a country and to the strength of our economy."
Article:
Harry Zeeve: Page 1 -
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David Walker: Page 1 -
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Alison Acosta Fraser: Page 1 -
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Belle Sawhill: Page 1 -
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Chris Swann: Page 1 -
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Carl Tannenbaum: Page 1 -
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Recipes: Lemon Chicken | Rachel's Omelet | Corn Pudding | Marinated Filet Mignon | Asian Pork Tenderloin and Coconut Jasmine Rice | Grilled Chicken Breasts | Steak au Poivre | Pretzel Salad | End of Spring Beef Stew | Chicken Tarragon | Roasted Sweet Potatoes | No Bowl Cake | Chris and Aunt Mary's Stromboli | Aunt Pat's Pizza Meat | Cracchiola Family Sauce | Chris's Baked Ziti | Aunt Eleanor's Spedini | Post-Thanksgiving Gumbo | Singapore Rice Noodles | Red Chili and Orange Barbecue Sauce | Tandoori-style Grilled Chicken