Longer term, it also heralds inflation, since a poorer America with a weakened economy may have little choice but to accelerate the printing presses to service our towering debt burden. Our friends abroad, and even the International Monetary Fund, lack the resources – and perhaps the will – to bail us out.
To avert this catastrophe, the president and the new Congress must put their political differences aside and forge a bipartisan consensus to do what’s necessary for us to remain a global superpower, and for our children to have a future.
A bipartisan majority of the president’s deficit commission has endorsed a detailed plan to make the necessary changes. It cuts government spending and raises taxes, tackling even such sacred cows as defense spending, the Social Security retirement age, and the home mortgage interest deduction. An even tougher proposal has been unveiled by former Democratic budget director Alice Rivlin and former Sen. Pete Domenici (R) of New Mexico – both of the Bi-Partisan Policy Center. While we can debate the details, these plans present a template for the type of hard decisions our country must make.