Fiscal Wake-Up Tour On October 1, 2007, Georgia State University hosted the Fiscal Wake-Up Tour. The Tour is a joint effort by U.S. Comptroller General David M. Walker (head of the U.S. GAO), the Brookings Institution, the Heritage Foundation and the Concord Coalition. The fact that the Brookings Institution and the Heritage Foundation have teamed up tells you something. All four members of the Tour group agree that our nation has very significant financial problems. In addition to Mr. Walker, each of the three organizations had a speaker present at the presentation. Each speaker said that the organizations have different ideas about possible means of dealing with the problems. However, they did not mention their possible means at the session. Instead, they summarized the problems and stated that citizens need to take action. The fact that the head of the GAO is involved in such a program (and is recommending questions for candidates) tells you of the gravity of the situation. Attached are a two-page list of suggested questions for candidates and each speaker’s power point presentation. Pages 5 and 6 of Dave Walker’s power point presentation summarize the gravity of the problems. Just analyzing current debt, Social Security, Medicare and certain other pension obligations, and NOT including future payments for defense, general government (i.e. roads, courts, FBI, CIA, agencies) or Medicaid, the present value of the federal government’s obligations is $50.5 Trillion. The total net worth of all Americans combined is $53.3 Trillion. According to the GAO, to produce the present value, future payments were discounted using a 5.7% interest rate, and health care was presumed to grow at the GDP per capita growth rate plus 1%. This growth rate is conservative, because the health care growth rate over the past 40 years has been the GDP growth rate per capita plus 2.5%. Also, 67% of the $50.5 Trillion comes due within the next 50 years. The portions of the government not considered – defense, general government and Medicaid, accounted for close to 60% of government spending in the 2005 fiscal year. Fiscal_Wake_Up_Tour_Suggested_Questions_For_The_Candidates.PDF Saving_Our_Future_Requires_Tough_Choices_Today.PDF Why_Deficits_Matter_Presentation.PDF The_Budget_and_Entitlements_Time_To_Take_Action_Presentation.PDF |