Unchecked federal deficit prompts comptroller general to bypass elected officials

March 18, 2007
Unchecked federal deficit prompts comptroller general to bypass elected officials

Don't blame the nearly $500 billion spent on the war in Iraq or the $125 billion to rebuild after Katrina, Walker says. These expenses don't help, but the culprits he names are the large federal entitlement programs — Social Security and Medicare — in combination with demographic forces and political irresponsibility. It also doesn't help that there are no meaningful budget controls in place.

And don't be lulled by the recent reduction in the deficit over last year at this time, as tax collections surpass growth in expenditures. Walker claims even an optimistic projection of economic growth over the long term won't fix the underlying budget issues.

What would really make the nation's chief accountant a happy man is for Congress to address the much-needed revamping of Social Security, Medicaid and Medicare — important stabilizing programs that are unsustainable in their current form. He believes lawmakers can maintain the integrity of the programs while realistically addressing the demographic challenge of the aging baby boomers.

The worst-case scenario for Walker would be failing to address these issues and defaulting on the debt, as did Argentina.