A “Fiscal Tsunami”

Not a fiscal blizzard, which implies a slowdown, but something that ultimately looks pretty in the moonlight. Not a fiscal twister, which wipes out a few mobile homes but not much else. No, a fiscal tsunami. Natives, tourists, and models alike.

I don’t care about what side of the aisle you sit on, that use of language should cause anyone to pause. Here’s what “tidings of joy” David Walker of the alleged bipartisan agency Government Accountability Office says are on the way:

* Absent reform, starting in 2041 social security will only have enough reserves to pay 73 cents of every dollar of promised benefits. The lesson here is start saving 27 cents per day so you’re prepared in 2041.

* Medicare is underfunded by over $32 trillion.

* Only 50% of workers in the U.S. have a private pension plan and we have the lowest savings rate of any industrialized nation.

* Without double-digit growth in GDP for decades, our economy won’t be able to simply “grow out of” these issues, absent reform.

* According to Mr. Walker, we could not renew the Bush tax cuts, eliminate all foreign aid, eliminate all earmarks, eliminate NASA, eliminate the National Endowment of the Humanities, and eliminate the entire Defense Department tomorrow and we still wouldn’t solve our current fiscal issues.

I do agree with Mr. Walker on several areas- first, we as a people are far too caught up in the here and now and don’t take enough steps to prepare for tomorrow. We’re an instant gratification society and focus most of our energy on today. Second, fiscal education in this country is worthless, or worse still, not present at all. And third, the government isn’t going to take care of you- you need to take care of yourself, starting by not counting on social security to fund your happily ever after.

Postlude: Not long after I started putting this post together, Mr. Walker announced his resignation as head of the GAO. He’s resigning to lead an independent group called Peter G. Peterson Foundation where he’ll do much of what he does now, but will be able to do so without being quite so politically correct.

You’re welcome.