Choosing the Nation's Fiscal Future (2010) / Chapter Skim
Currently Skimming:
11 What Should Be Done Now?
11 What Should Be Done Now?
Pages 209-216
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 209... ...
We hold widely differing views, in some cases, about the priority to give different categories of spending, about who should pay for government and how much government they should pay for, about the proper division of responsibilities between federal and state and local governments, and even about the fundamental purposes of government. What we firmly agree on is the need for strong action now to adjust the long-term relationship between federal government spending and revenues -- the urgent need to put the budget on a sustainable path.
|
From page 210... ...
If so, interest costs could increase before policy makers have had time to act. As described in Chapter 1, increased interest costs could lead to escalating problems: first, crowding out or forcing abandonment of other government functions and priorities as interest payments swallow greater shares of the federal budget; and later, decreasing wealth, slowing growth, and reducing future standards of living.
|
From page 211... ...
The risk would be compounded if, for instance, standard population projections underestimate growth of the elderly population.2 After a tipping point that is inevitable but impossible to pinpoint, there will be no simple fiscal strategy to bring revenues and spending into alignment. If that point were reached, the social and economic costs of delay would explode.
|
From page 212... ...
Thus, the fiscal challenges facing the United States by no means imply the devastation of these programs that have been so instrumental to the well-being of senior citizens and to reducing the proportion of seniors who live in poverty. • Although the demographic pressures facing the United States are serious, they do not look overwhelming, based on standard projec tions of labor force participation, future retirement ages, immigra tion, and other relevant factors (cf., Social Security Administration, 2009d)
|
From page 213... ...
4. Does the proposed budget restrain health care cost growth and introduce changes now in the major entitlement programs and in other spending and tax policies that will have cumulative beneficial fiscal effects over time?
|
From page 214... ...
People can communicate their views on all of these matters to political leaders and policy makers. It is important for leaders to know that their constituents, armed with the facts and working with the right framework, can support leaders who advocate policies contributing to a sustainable federal budget.
|
From page 215... ...
Reforms can help leaders act as responsible stewards of the interests of the nation's children and grandchildren. The committee favors reforming the federal budget process to use better information about the long-term budget outlook as a basis for setting medium- and long-term fiscal goals and to consider adoption of new procedures to hold leaders accountable for responsible fiscal stewardship.
|
From page 216... ...
. going beyond 50 years may provide informa tion to help reformulate present entitlement programmes and build a strategy to deal with future challenges." The Social Security and Medicare actuaries focus on a 75-year horizon, long enough to encompass the lifetimes of most people who are already alive.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.