Statement by Michael Peterson Following Speech by Governor Chris Christie in New Hampshire
NEW YORK — Michael A. Peterson, President and CEO of the Peter G. Peterson Foundation, commented today following a speech at the New Hampshire Institute of Politics by New Jersey Governor Chris Christie:
“The 2016 election represents an important opportunity for a national conversation on how to address America’s unsustainable fiscal outlook.
“Governor Christie should be commended for beginning this discussion, and offering a range of specific reform proposals. There are many policy options that exist, and candidates who may disagree with Governor Christie’s policy ideas should put forth their solutions to our nation’s undeniable and dangerous long-term debt problem. Lawmakers from both parties have a responsibility to tell us how they intend to solve our nation’s fundamental fiscal challenges.
“A sustainable fiscal foundation is an essential ingredient for a healthy and prosperous economy, now and in the future. Improving our long-term fiscal picture will help create the conditions for strong economic growth, with more opportunity and mobility. The 2016 elections should be used to discuss and debate the many available policy solutions to get our fiscal house in order and ensure a bright economic future for the next generation.”
In its 2014 Long-Term Budget Outlook, the nonpartisan Congressional Budget Office (CBO) projects that the federal debt could reach 183 percent of GDP within 25 years. If policymakers do not take action, CBO warns that the rising debt could reduce incomes, crowd out investments in our future, increase the risk of a fiscal crisis and reduce the flexibility of policymakers to respond to important future events.
Further Reading
Social Security Inaction Raises Risk of Higher Interest Rates and Inflation
Adding to the national debt by borrowing instead of enacting Social Security reform can harm the economy in two key ways.
What Is Fiscal Dominance?
Fiscal dominance occurs when the national debt — and especially high interest costs — forces the hand of monetary policymakers.
Can We Grow Our Way Out of the National Debt?
The gap between what economic growth can realistically deliver and what fiscal sustainability requires is too large to bridge without also addressing the structural imbalance between federal spending and revenues.