The Latest: Budget

Calls for Fiscal Responsibility December 10, 2009 7:08 PM

The Concord Coalition convened a National Conference on Fiscal Stewardship this week in Washington, D.C. Attendees came from across the country and discussed ideas for addressing our growing national debt and increasing costs of entitlement programs, as reported by CNN Money. Learn more about the national debt, budget deficits and entitlement programs in our "Deficits and Debt" and "Social Security" issue papers and on the Concord Coalition website. Share your thoughts in our Forums.

-- Association of Young Americans

Budget, Deficits and Debt, Healthcare, social security | Comments (0)

Obama Budget Projects Doubling of Debt over next 8 years March 4, 2009 8:53 PM

President Obama presented his first budget to congress last month. Included in the budget were projections over the next ten years. President Obama's projections project that over the next 8 years the national debt will jump from close to 11 trillion dollars at the start of his Presidency to $21 trillion 8 years from now. You can see the president's budget projections for yourself on the Office of Management and Budget website.

Are you concerned about such a significant increase in the amount of our national debt? Do you think such brrowing is necessary for the next 8 years? Share you views in the Forums and learn more about the national debt in the Association of Young Americans Issue paper, Deficits and Debt.

-- Association of Young Americans

Stimulus Bill is Law February 19, 2009 12:48 PM

Last Friday the House and Senate approved, and this week the President signed into law, the American Recovery and Reinvestment Act. Is passed both Houses of Congress with only three Republican lawmakers voting for the Bill. The cost of the bill is $787 billion. In conjunction with the bill's passage, the White House launched a website - recovery.gov. As stated on the site "Recovery.gov will feature information on how the Act is working, tools to help you hold the government accountable, and up-to-date data on the expenditure of funds."

With so much news coverage of the stimulus package details, we woudl like to hear from you as to your understanding of the law, what impact you think it will have on the economy and more broadly on our country. Share your views in our Forums or on our Facebook Cause.

-- Association of Young Americans

Budget, Economy | Comments (0)

$10,000 Prize for Debt Video Game! December 6, 2008 8:32 AM

The Peter G. Peterson Foundation has started a contest for 18-28 year olds to see who can create a video game that addresses the United States' fiscal crisis. "The Peter G. Peterson has teamed up with mtvU to create InDebtEd, a new campaign for college students that raises awareness about the dangers of personal and government debt and promotes action to help stop the fiscal crisis in the United States. As part of this campaign, we are asking young people nationwide to participate in the InDebtEd $10,000 Challenge." You can learn more about this contest at indebted.mtvu.com/the-challenge. You can learn more about the nation's fiscal situation in the Association of Young Americans Deficits and Debt Issue Paper. As always we invite you to share your views and concerns in our Forums.

-- Association of Young Americans

President-elect Obama stresses budget reform in addition to stimulus November 26, 2008 1:25 PM

With so much focus on the amount and content of a potential economic stimulus package, President-elect Obama this week also recognized the need for reducing budget deficits. As reported by the New York Times, Obama noted that "We can't sustain a system that bleeds billions of taxpayer dollars on programs that have outlived their usefulness or exist solely because of the power of politicians, lobbyists or interest groups," Mr. Obama said. "We simply can't afford it." The article went on to note that "Together with a two-year economic recovery package of hundreds of billions of dollars in spending and tax cuts, Mr. Obama hopes to win early approval in Congress next year for separate language committing the government to actions that would bring deficits under control once the economy recovers.

Learn more about budget deficits in our Deficits and Debt issue paper. Share your thoughts, views and questions in our Forums.

-- Association of Young Americans

Bailout of U.S. Automakers? November 17, 2008 5:18 PM

Congress and the President are debating the proposed $25 Billion bailout of the 'big 3' U.S. automakers. "Senate Democrats said they would press ahead with their plan to carve out a portion of the $700 billion Wall Street bailout to pay for the loans, but aides in both parties and lobbyists tracking the plan acknowledged they did not currently have the votes to do so. The White House and congressional Republicans insist that the automaker bailout money instead come from redirecting a separate $25 billion loan program approved by Congress to help the industry develop more fuel-efficient vehicles," reports Yahoo News. President-elect Obama said in a 60 Minutes interview on sunday that "So my hope is that over the course of the next week, between the White House and Congress, the discussions are shaped around providing assistance but making sure that that assistance is conditioned on labor, management, suppliers, lenders, all of the stakeholders coming together with a plan what does a sustainable U.S. auto industry look like?"

While there has been a significant focus on the type of cars and trucks the American automobile manufactures make, their financial condition is also the result of the rising cost of employee and retiree benefits.

What do you think about the federal government giving $25 Billion to American car manufacturers? How about government benefits to private corporations more generally? Share your thoughts and ideas in the Forums.

-- Association of Young Americans

Budget, Economy | Comments (0)

Students Concerned about Federal Budget November 11, 2008 12:37 PM

Initial reports from last week's election are that over 2 million more young people voted in 2008 than in 2004, according to CIRCLE. While there are a multitude of issues of concern to young Americans, A group of young people at the University of Pennsylvania have formed a non-partisan coalition - Pound It - to address federal budget issues, including increasing annual deficits and the growing national debt. Pound It's website describes their goal as follows:

Hey, do you know how the national debt is going to affect your future? Do you really care? Probably not. However, it's going to have a bigger impact on your life than you may realize. Pound-It is a nonpartisan coalition of students at the University of Pennsylvania, formed to increase awareness about our current budget crisis. Our goal is to start a discussion about balancing the needs of the elderly and the futures of the young. Check out our site for more info. Help us turn that $10 trillion debt into a thing of the past!

Learn more about Pound It at their website and learn more about the federal budget in the Assocation of Young Americans Deficits and Debt Issue Paper. As always, we invite you to share your thoughts and concerns about these important national issues in our Forums.

-- Association of Young Americans

Activism, Budget, Deficits and Debt | Comments (0)

Bailout Agreement September 29, 2008 8:16 AM

It appears a deal on the Wall Street Bailout agreement has been reached, with the expectation that it will be passed by Congress in the next few days. "If all goes well, U.S. taxpayers will pour billions into shaky securities, many held at tottering financial institutions. Market demand for those securities has evaporated, as financial companies now deal with the fallout from bad bets during the housing run-up that ended two years ago. The government could recoup its money, if the market stabilizes and the government eventually can find buyers," reports the USA Today. The article also noted, on the other hand, "If all doesn't go well? The government will have wasted billions of dollars at a time when the money could have been put to better use elsewhere or saved. 'This is too much money in too short a time going to too few people,' with too many questions unanswered, says Rep. Dennis Kucinich, D-Ohio."

While both Presidential candidates both gave tacit approval to a bailout, they also both spoke about the need to stop deficit spending in our federal budget. Are you concerned about the amount of money our federal government borrows each year and that our National debt is over $9.4 trillion? You can learn more about it in our Deficits and Debt issue paper. Share your views in our forums.

-- Association of Young Americans

Budget, Deficits and Debt, Economy | Comments (0)

Wall Street Bailout September 25, 2008 8:06 AM

Budget, Deficits and Debt

In the last few weeks, the news about financial institutions failing has been constant, with many officials claiming evenmore widespread economic problems if the federal government did not act. Last night, President Bush addressed the nation to discuss the situation and his $700 billion bailout proposal. "The plan would allow the government to buy up unmarketable assets, such as mortgage-backed securities, that economists say are clogging the financial system and blocking access to many types of credit. After the markets recover, the government could sell the securities to investors and recoup much of its costs. But many Democrats as well as Republicans say they want more protections for taxpayers, such as allowing the government to gain a potential equity stake in companies that participate," reports the Wall Street Journal.

David Walker, former U.S. Comptroller and current president of the Peterson Foundation, in an op-ed in the Financial Times related this financial crisis to the gvernment's deficit spending and growing national debt. "Beyond the turmoil for banks and homeowners, however, there is a super-sub-prime crisis brewing in Washington. Our fiscal policies have created a disconnect between today's citizens and future taxpayers. Today's taxpayers benefit from high government spending and low taxes, while future generations are expected to pay the bill. Our real challenge is where we are headed on our do-nothing fiscal path. Washington has charged everything to the nation's credit card - engaging in tax cuts and spending increases without paying for them."

How have you been impacted by this financial crisis? Has President Bush, or anyone else, sufficiently explained the situation? Share your thoughts and vies in our Open Forum. Also, you can learn more about the national debt and federal government deficits in the Association of Young Americans' Deficits and Debt issue paper.

-- Association of Young Americans

Budget, Deficits and Debt, Economy | Comments (0)

I.O.U.S.A opens next Friday! August 14, 2008 5:18 PM

Next friday, with some early showings a week from tonight, a feature documentary "I.O.U.S.A." will open in 10 cities around the country. The film is fact-based, nonpartisan and nonideological, and it features a number of candid appearances, including by Warren Buffett, Alan Greenspan, Paul Volcker, Pete Peterson, Sens. Kent Conrad and Judd Gregg, former Treasury Secretaries Paul O'Neill and Robert Rubin, former CBO chief Alice Rivlin, Rep. Ron Paul, Bob Bixby, and David Walker. You can learn more at the film's website - www.IOUSAtheMovie.com.

Learn more about our nation's budget in AYA's Deficits and Debt Issue Paper and at the Peterson Foundation. Share your thoughts, questions and concerns in our Deficits and Debt Forum.

-- Association of Young Americans

Budget, Deficits and Debt, Healthcare, social security

Dealing with Medicare Costs July 7, 2008 12:23 PM

In the next few weeks Congress and the President will be forced to face the increasing Medicare costs, is only in the short term, as scheduled cuts to physican compensation went into effect on July 1. "How to pay doctors through the federal health insurance program is an issue that lawmakers are forced to confront every year because of what is widely agreed to be an outdated reimbursement formula. [...] Just before the Fourth of July recess, the House passed a bill to prevent the Medicare pay cut by a vote of 355 to 59. In the Senate, Republicans blocked efforts to take up the bill, so the cut took effect on July 1, as required by the formula. But the Bush administration has delayed processing of new claims to give Congress time to come up with a compromise," reports the New York Times. "[T]he Medicare issue has been a sticking point for years. The question is how to rein in the rapidly rising cost of the federal health program. Members of both parties say they want to change the formula, which defines a "sustainable growth rate" for spending on doctors. But Congress is nowhere near agreement. The pending bill offers a short-term fix. It would reverse the 10.6 percent cut and increase Medicare payments to doctors by 1.1 percent in January. Under the current formula, doctors would still face cuts of more than 5 percent a year from 2010 to 2012."

Reforming medicare and medicaid was one of the issues taken up at the Youth Entitlements Summit (YES) a few weeks ago in DC. AYA's president participated as one of the youth panelists at YES, which culminated in the bipartisan panel authoring a Declaration for addressing entitlement and budget issues. Share your thoughts and questions on Healthcare costs and the federal budget in our forums.

-- Association of Young Americans

Budget, Deficits and Debt, Healthcare

Entitlement Reform June 17, 2008 8:50 AM

Yesterday and today, 12 young americans - including the president and co-founder of the Association of Young Americans - have been holding hearings on the increasing costs of Social Security, Medicare and Medicaid in Washington, D.C. at the Youth Entitlements Summit. Today the summit will hold a panel on the underrepresentation of young people in the political process along with other events that will including Senator Norm Coleman, Representative John Spratt and Representative Paul Ryan. Former Supreme Court Justice Sandra Day O'Connor wrote an op-ed in the Washington Post about the conference. You can learn more about entitlement programs and the federal budget in our Social Security and Deficits and Debt issue papers. Share your questions, ideas and concerns in our Forums.

-- Association of Young Americans

Budget, Deficits and Debt, Healthcare, social security

Tax Cuts June 2, 2008 3:47 PM

This morning, President Bush spoke today about how important he feels it is for the tax cuts passed in 2001 and 2003 to be made permanent.

"[T]he tax cuts of 2001 and 2003 were necessary. And the facts are that we had 52 months of uninterrupted job growth, the longest in the history of the United States. I know you believe, and I firmly believe, that those tax cuts were part of that engine for that economic vitality. And the economy is not doing as well as we'd like to do -- like it to do today, but there's no question that the tax cuts provided economic vitality.

"And now the question is, what will the Congress do? Given the facts that tax cuts have worked, what will be the congressional response? Our response is, let's make those tax cuts permanent. Let's make sure that there is certainty during uncertain times in our economy. Imagine if you're trying to plan -- plan your life, plan the future for your small business -- and you don't know whether or not Congress is going to keep your taxes low. It makes your environment more uncertain."

The Congressional Budget Office reports that "the federal government recorded a deficit of $151 billion for the first seven months of fiscal year 2008, CBO estimates$70 billion more than the shortfall incurred in the same period last year."

In two weeks AYA's President and co-founder will be one of 13 panelists and the Youth Entitlement Summit in Washington, DC. The summit is being held to examine the long term budget outlook, with focus on social Security and Healthcare spending

What is your opinion about tax cuts, deficit spending and the state of the federal budget? You can learn more about the budget and the National Debt on our website here. Share your views in the Deficits and Debt Forum.

-- Association of Young Americans

Deficit for 2008 already at $311 Billion April 28, 2008 11:44 AM

Six months into the 2008 fiscal year (budget years run from September), the federal budget deficit is already $311 Billion. "That figure would represent a big jump from the fiscal 2007 deficit of $162 billion, admitted the White House. But, measured as a percentage of the nation's gross domestic product, $410 billion in red ink is well within recent historical norms, according to administration budget documents," reports the Christian Science Monitor. "A bipartisan group of experts organized by Brookings and the Heritage Foundation recommends that Congress enact explicit long-term budgets for Medicare, Medicaid, and Social Security, and set limits on the automatic entitlement spending growth. Such action would force Congress to make trade-offs between entitlements and other fiscal priorities."

In our Deficits and Debt Issue Paper, Peter G. Peterson is quoted as stating that "The temptation to buy votes from boomers and seniors by piling massive unfunded liabilities on future generations ($74 trillion at last count) seems hard to resist. According to humorist Dave Barry, 'it's like going to a fancy restaurant and ordering everything on the menu, secure in the knowledge that when the bill comes, you'll be dead.' [...] [B]oth political parties have formed an unholy alliance an undeclared war on the future. An undeclared war, that is, on our children. From neither party do we hear anything about sacrificing today for a better tomorrow."

What do you think about the federal government running annual and increasing budget deficits? Learn more in our Deficits and Debt Issue Paper and share your thoughts in the Forums.

-- Association of Young Americans

Budget, Deficits and Debt

Government Waste April 9, 2008 9:38 AM

The Government Accountability Office released a report this week that detailed improper expenses incurred by government workers. "The review of card spending at more than a dozen departments from 2005 to 2006 found that nearly 41% of roughly $14 billion in credit-card purchases, whether legitimate or questionable, did not follow procedure either because they were not properly authorized or they had not been signed for by an independent third party as called for in federal rules to deter fraud. For purchases over $2,500, nearly half or 48% were unauthorized or improperly received. Out of a sample of purchases totaling $2.7 million, the government could not account for hundreds of laptop computers, iPods and digital cameras worth more than $1.8 million. In one case, the U.S. Army could not say what happened to computer items making up 16 server configurations, each of which cost nearly $100,000," reported the USA Today. A copy of the report is available here.

Share your thoughts on the GAO findings in the Open Forum.

-- Association of Young Americans

Budget, Deficits and Debt, Gov't Reform

Seniors Biggest Government Expense February 14, 2008 1:45 PM

Benefits for senior citizens account to the largest portion of federal government spending according to a new report by the USA Today. "The federal government spends more on seniors than on any other group or program," the report found, noting the following:

Federal spending in 2007 (billions) Percent of budget

Senior benefits $952.3 34.9%
Defense $552.6 20.2%
Interest on debt $237.1 8.7%

Learn more about Federal government spending in our Deficits and Debt paper and one of the main federal expenses in our Social Security paper.
Share your thoughts and concerns in our Forums.

-- Association of Young Americans

Budget, Deficits and Debt, social security

President Bush's 2009 Budget Unveiled February 6, 2008 5:04 PM

Amid the news and excitement of the presidential primaries and SUper Tuesday, the President released his proposed budget to congress this week. It expects a deficit of over $400 billion dollars. "[C]ritics included GOP Sen. George V. Voinovich of Ohio, who called the budget fiscally irresponsible [and] said Bush is being fiscally dishonest in portraying his proposal as starting to erase what will be about a $400 billion federal deficit this year," reports the Columbus Dispatch. "Rival-party lawmakers criticized the proposal's push to extend tax cuts that Democrats say are too weighted toward the wealthy, while not including the full costs for the war. Bush's budget calls for spending $70 billion on war efforts when about $200 billion is expected to be needed." The White House reports that the budget includes an approximately $150 billion stimulus package to help the economy.

Learn about annual budget deficits and the National Debt here on our website. Share your thoughts and concerns on the fiscal picture for our country in the Deficits and Debt Forum.

-- Association of Young Americans

Budget, Deficits and Debt, Economy

Unnecesary Defense Spending? September 30, 2007 12:54 PM

Despite many calls, from both sides of the aisle to reduce or eliminate 'earmarks' or 'pork-barrell' spending, the practice appears alive and well. "The Pentagon insists it has enough C-17 Globemaster jets, which are partly manufactured in Texas and used by the Air Force to ferry troops and weapons to hot spots around the globe. Nevertheless, lawmakers from the Lone Star State and elsewhere recently inserted in a defense authorization bill a requirement that the military buy 10 more aircraft at a cost of $2.4 billion. The project is among the billions of dollars of earmarks, or special funding items, tucked into several defense measures recently approved by the House and Senate for the coming fiscal year," reports the Houston Chronicle. "Most of the earmarks are for equipment and research not included in the budget submitted by the Pentagon. ''Every dollar that is going to a particular earmark or a C-17 (aircraft) is a dollar that isn't going to other higher priority items in the federal budget," said Steven Ellis, vice president for Taxpayers for Common Sense, a watchdog group that scrutinizes earmarks. Deputy Defense Secretary Gordon England warned Congress about the ramifications of funding more C-17s. 'If we keep putting money into C-17s, then frankly, money comes out of some other investment category,' he said. But lawmakers defend programs that provide jobs and business to constituents."

Share your thoughts and ideas in our Open Forum about the practice of inserting earmarks into funding bills.

-- Association of Young Americans

Investing in the America of Tomorrow August 4, 2007 12:39 PM

This week saw the collapse of a bridge in Minneapolis which killed several people and injured dozens. The vast interstated highway system that criss-crosses our country was born during the Eisenhower administration - 50 years ago. "According to engineers, the nation is spending only about two-thirds as much as it should be to keep dams, levees, highways, and bridges safe. The situation is more urgent now because many such structures were designed 40 or 50 years ago, before Americans were driving weighty SUVs and truckers were lugging tandem loads. It all adds up to a poor grade: The American Society of Civil Engineers gave the nation a D in 2005, the latest report available, after assessing 12 categories of infrastructure ranging from rails and roads to wastewater treatment and dams," reports the Christian Science Monitor. Are you concerned that funding for the rebuilding/refurbishing of infrastructure is lower on the list of budgetary concerns than programs that impact a specific constituency or group? Share your ideas in the Open Forum.

-- Association of Young Americans

Strained Resources = Walter Reed Problems? March 6, 2007 5:03 PM

Over the last few weeks there has been a significant amount of press about poor conditions present at the Walter Reed Army Medical Center. "Lawmakers probing the scandal at Walter Reed Army Medical Center are saying it wasn't just a failure of leadership. Constrained resources during a war lasting longer and costing more than anyone in the administration had expected, along with a controversial privatization initiative at the hospital, also played a role. But beyond these circumstances, one key factor has come up during congressional testimony this week: The facility was due to be shuttered in coming years, raising the possibility that officials were reluctant to make large financial commitments to it," reports the Christian Science Monitor. "This combination of challenges illustrates just how strained military resources have become as the US grapples with its longest conflict since the Vietnam War. And as the current center of attention, Walter Reed has emerged as a symbol of the difficult decisions confronting the Pentagon. A core question: How can the Defense Department maintain facilities that are to be closed, including its premier Army hospital, without essentially throwing money away?" Share your thoughts in our Open Forum.

-- Association of Young Americans

Minimum Wage + Estate Tax Cut July 30, 2006 8:52 PM

"Republicans proposed to package new spending and a $2.10-an-hour minimum wage increase with a bill to permanently cut estate taxes," reports the Wall Street Journal. The bill's projected costs are $310 billion over 10 years. What do you think of cutting the estate tax? Is it making the tax system more equitable by lessening the "double tax" on income after someone's death or is it irresponsible with a budget deficit and trillions in debt? Be heard in the Open Forum.

-- Association of Young Americans