MEET DAVID WALKER:
U.S. Comptroller General David Walker is a busy guy. He oversees Congress?s investigative agency [www.gao.gov], he writes on a wide range of topics, and he travels - tirelessly - to speak with college students, business groups, and other concerned citizens about critical issue facing the nation. Perhaps the most urgent message he?s trying to deliver these days is, "Wake Up, America!"
Working with the Concord Coalition, the Brookings Institution, the Heritage Foundation, and other groups, Walker has been crisscrossing the country to tell Americans they?d better get ready now for the financial realities facing the nation tomorrow.
For Our Grandchildren?s Tim Penny caught up with Walker recently and asked a few pressing questions.
Interview
Penny: For over a year and a half now you have been working with the Concord Coalition and a handful of top budget experts on the "Wake Up America" Tour. To date, you've participated in every tour stop. Is America waking up?
David Walker: Yes, we?re starting to see policymakers, the press, and the public pay more attention to our nation?s growing fiscal imbalance. The Administration has gone from "deficits don?t matter" to "we need to balance the budget within five years and make a significant down payment on our $50 trillion long-term fiscal gap." Members of Congress on both sides of the aisle are also becoming increasingly concerned.
Last year, Senator George Voinovich and Congressman Frank Wolf introduced legislation to establish a bipartisan commission to examine important issues like Social Security, tax policy, health care, and the budget process. More recently, Senators Pete Dominici and Diane Feinstein and Senators Kent Conrad and Judd Gregg have introduced their own commission proposals.
Media reaction to the Fiscal Wake-Up Tour has been overwhelmingly positive. The Tour?s appearances in various cities have resulted in many newspaper editorials and opinion pieces. The nationally acclaimed CBS news program "60 Minutes" aired a piece on the Wake-Up Tour in March.
In the face of such growing awareness, I?m hopeful the public and those seeking the Presidency will make our nation?s fiscal outlook an important issue going into the 2008 elections. If the American people hold their current and potential elected officials accountable for their views on this issue, I believe we have a real chance to turn things around before a crisis forces us to do so.
Penny: In addition to the wake-up tour, what else is GAO doing to educate Congress on this issue?
David Walker: GAO regularly testifies before Congress on the fiscal outlook, and we?ve issued several publications to help educate members about various aspects of the problem. Some of our recent publications include "Fiscal Stewardship: A Critical Challenge Facing our Nation" (GAO-07-362SP), "Federal Debt: Answers to Frequently Asked Questions?an Update" (GAO-04-485SP), and "Understanding Similarities and Differences Between Accrual and Cash Deficits" (GAO-07-117SP). All of these documents can be found on GAO?s website at www.gao.gov.
More broadly, much of government is based on conditions that date back to the 1950s and 1960s. Once federal programs or agencies are created, the tendency is to fund them in perpetuity, regardless of changing needs and circumstances, and whether they are achieving real results. This is a key reason our government is now so large and so expensive. Congress and the President need to decide which federal activities remain priorities, which should be overhauled, and which have simply outlived their usefulness.
In 2005, GAO published an unprecedented report called "21st Century Challenges: Reexamining the Base of the Federal Government," which is also available free on our website. This document seeks to focus attention on the need for government transformation and asks more than 200 probing questions about mandatory and discretionary spending, federal regulations, tax policy, and agency operations.
Penny: When it comes to Social Security?s future, we often hear doom and gloom scenarios. Are things really as bad as people say they are?
David Walker: No, the problems with Social Security are not immediate, and they aren?t that difficult to fix. Nonetheless, we should act soon to address our Social Security challenge. By acting now and phasing in some needed reforms, we can exceed the expectations of every generation of American. Why? Because Social Security reform will likely involve few if any changes for individuals in their late 50s or older. Changes for younger workers can be phased-in over time. Possible revisions that have been proposed in the past include higher retirement ages, lower replacement rates for middle- and upper-income individuals, a modified cost-of-living index, and a higher taxable wage base. In light of our nation?s savings deficit, we may also want to consider requiring a supplemental personal savings account to help individuals with their retirement needs, such as long-term care.
Penny: Is it too late to act?
David Walker: I?m an optimist by nature, and things are far from hopeless. Yes, it?s going to take some tough choices on a range of issues, including budget controls, entitlement reform, spending constraints, and tax reform. But a few thoughtful reforms phased in over time can return us to a more prudent path.
There?s an old saying that the time to fix your roof is while the sun is shining. The real challenge is convincing elected officials and the public that the time to act is now, while the economy is relatively strong, unemployment is low, inflation is relatively low, and our capital markets are relatively strong. The truth is, if we postpone needed reforms until a crisis is upon us, we?ll have fewer and harsher options.
Other countries have faced similar challenges, and some have acted. Like the United States, Australia and New Zealand have aging populations. However, unlike the United States, these two countries have stepped up to the plate. Among other things, they?ve reformed their overburdened public pension and health care systems. The efforts by policymakers in Australia and New Zealand show that it is politically possible to make difficult decisions that are in a country?s long-term best interests.
Penny: What can we as Americans do to be part of the solution?
David Walker: What we need right now is strong leadership. But effective leadership, the kind that leads to meaningful and lasting change, has to be bipartisan and broad-based. Leadership can?t just come from Capitol Hill or the White House. Leadership also needs to come from Main Street. It?s time for the three most powerful words in the Constitution ? "We the people" ? to come alive. The American people are going to have to become better informed and more involved as we head toward the 2008 elections.
They need to communicate their views to their elected representatives and to hold politicians accountable for results. They also need to try and ensure that our next President will make fiscal responsibility one of his or her top three priorities. Younger Americans especially need to become involved. After all, it is they and their children who will bear the heaviest burden if today?s leaders fail to act.
