Statement by Michael A. Peterson, Vice Chairman of the Peter G. Peterson Foundation, on Congressional Budget Office Outlook

Aug 24, 2011

“The Congressional Budget Office’s updated outlook released today underscores the urgent need to find solutions to our long- term fiscal challenges while revitalizing economic growth and job creation.

“Addressing our long-term fiscal challenges would not only help secure our nation’s long-term economic health, but would bring something very important to our current condition--confidence. America needs to demonstrate that it is getting its fiscal house in order so that the businesses, banks and investors with trillions in available capital have the confidence to deploy it.

“Demonstrating fiscal responsibility need not hamper the current delicate recovery. The way to navigate between fiscal discipline and the fragile recovery is simple--agree on a long-term plan now, with measures that go into effect when the economy is on sounder footing.

“As the Joint Select Committee begins its deliberations, we urge it to expand its mandate and move decisively to agree on a grand bargain that solves our structural deficits in a way that also promotes job creation in the short term. There are many policy options to choose from, as the recent work by the Gang of Six, the National Commission on Fiscal Responsibility and Reform, and others demonstrates. What is needed is the political will to enact a long-term comprehensive plan. Failure to do so will further undermine financial market confidence and therefore only delay the country’s ability to get back on the right track.”

About the Peter G. Peterson Foundation

The Peter G. Peterson Foundation is a non-profit, non-partisan organization established by Pete Peterson – businessman, philanthropist, and former U.S. Secretary of Commerce. The Foundation is dedicated to increasing public awareness of the nature and urgency of key long-term fiscal challenges threatening America's future and to accelerating action on them. To address these challenges successfully, we work to bring Americans together to find and implement sensible, long-term solutionsn that transcend age, party lines and ideological divides in order to achieve real results. To learn more, please visit www.PGPF.org.

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