I.O.U.S.A - Addison Wiggin [15]
dition is worse than advertised and
He continued, outlining the four we need to act; we need to act soon major economic challenges that drew because time is working against us.
us to his message at the outset of the —DAVID WALKER
project: “ America faces four serious
defi cits today. The fi rst is a budget
defi cit; the second is a savings defi cit; the third is a balance of payments defi cit, of which the trade defi cit is a subset; and the fourth and most serious of all is a leadership defi cit. ”
“ How can this be happening to the richest country in the world? ” Diane Rehm wanted to know.
“ Well, we ’ ve lost our way, quite frankly. ”
The four defi cits facing the nation, as outlined by David in over 50 speeches and interviews given since the Fiscal Wake - Up Tour began on September 26, 2005, would ultimately form the framework for the fi lm and subsequently this book.
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22 The
Mission
The National Conversation
We ’ re in agreement on one fundamental fact: Our current fi scal path is unsustainable. These defi cits are not predictions of what could happen in the future. They are imbalances within the U.S. economy that are occurring now. As we write this, in the summer of 2008, the American people are slowly awak-ening from their easy credit and housing bubble
- induced
slumber. The problem is that now that these problems
—
record energy prices, skyrocketing food costs, and an overall weakened economy — are staring them in the face, Americans are generally unprepared to engage in the national conversation occurring concerning these fi scal issues.
As we learned though talking with the average man on the street, people feel daunted and overwhelmed by economics.
The simple fact is, we ’ ve been apparently successful as a nation for so long that the average citizen hasn ’ t felt compelled to understand what ’ s happening in the economy. Fear of gigan-tic numbers, seemingly indiscernible statistics, debates over theory, and partisan bickering among the national political parties only add to the confusion. When people don ’ t understand something, they tend to dismiss it. What the average American doesn ’ t realize is that what happens at the Federal Reserve . . . in a Senate Budget Committee hearing . . . at a scrapyard in Los Angeles . . . or even in a lightbulb factory in China, directly affects them.
What we hope to do in the next few chapters is arm you with the language and resources necessary to engage in this national conversation so that you can hold your elected offi -
cials accountable for their decisions.
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C h a p t e r 2
THE BUDGET DEFICIT
It’s not just immoral. It’s fundamentally wrong—
and mean—for one generation to spend the next generation’s money.
—Bill Bonner, best-selling author
In 1992, Warren Rudman, a Republican senator; Paul Tsongas, the Democratic presidential candidate; and Pete Peterson, the former Commerce Secretary, founded the Concord Coalition. At the time, they were very concerned about the budget defi cit and also the long - term outlook of compounding national debt.
A press conference was held to introduce the organization in front of the National Debt Clock in Times Square.
“ We believe the Concord Coalition will be a powerful grassroots organization that will say to the politicians all 23
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24 The
Mission
across this country that the American people are ready for truth, ” Paul Tsongas told the group of reporters.
“ Let me be blunt, ” said Warren Rudman, “ the two political parties are unable to speak the truth because the American people frankly don ’ t want to hear it. Because they don ’ t understand it. ”
“ We are now borrowing twenty - two cents of every dollar that we ’ re spending, ” Pete Peterson warned, “ and in effect what we ’ re doing is we ’ re slipping this huge hidden check for our free lunch to our children and our grandchildren.
And you ain ’ t seen