Our debt is piling up and we are merely watching

Washington has long had an unstated preference for the saying, “Don’t just do something, stand there.” The release of the president’s budget, and the predictable partisan reaction, reminded me of that quote.

The president’s budget commendably stabilizes debt and keeps deficits steady, but that’s not enough given where we are. With debt near a record high, we can’t be satisfied with such standing still. As the economy slowly begins to recover and the short-term picture improves, it’s time to start thinking about the long-term consequences of inaction and long-range deficit solutions.

{mosads}The president should be commended for paying for all of his new initiatives, but the administration’s budget doesn’t address the long-term drivers of our debt: an inefficient tax code and an aging society. On its current path, Medicare and Medicaid costs are projected to grow by about 75 percent over the next ten years, despite the President’s plan for nearly $300 billion of health savings. Meanwhile, Social Security is projected to grow at a similar rate, yet it is not seriously addressed in the proposal.

The cost of doing nothing now will be devastating to many families and future generations. If nothing is done, Social Security recipients – even the most vulnerable — will face a 23 percent across-the-board benefit cut in 2033. Even that scenario is not enough to get Washington to do something.

Health and retirement programs are mandatory spending, meaning they are on autopilot; the costs go up as the population ages since more people are eligible. We need to focus on these drivers of our debt. The spending on these programs – and the additional debt piled on to pay for them – are squeezing spending on investments such as education, transportation, environmental, science and technological research. In 2025, federal spending on major health and retirement programs and interest on the debt will account for 67 percent of spending.

Falling levels of investment will reduce our nation’s flexibility to address future needs. We need to be thinking of energy sources and technologies for the next generation. Will we have the flexibility to give grants to scientists to discover a cure for cancer or address climate change or will we dedicate our resources toward servicing our debt and retirement programs?

Energy security will ensure that future generations enjoy a high quality of life. I believe we must take action on energy security now for the same reasons that we must take action on addressing the long-term drivers of our national debt: for the sake of future generations. Let’s export our oil and natural gas to our allies, commit to green jobs and renewable energy, and let’s continue shale extraction with strong environmental safeguards. 

Government involvement in energy research has a long and productive history. Our access to cheaper and cleaner forms of energy are partially a result of government researchers. If you look at our economic recovery, the energy sector has played a key role. Yet, those dollars for research will be more difficult to find if we continue spending a larger percentage of our federal budget on debt service and entitlements.  

If we continue to ignore the mounting threats of the national debt, future generations will have fewer opportunities, slower economic growth, and a lower standard of living. The president and the Congress should develop a budget that addresses these issues as a priority, because if we don’t start doing so now, we will pay the cost in the future.   

Richardson was governor of New Mexico from 2003 to 2011.  He also served as the U.S. Secretary of Energy, Ambassador to the United Nations, and a member of the United States Congress.  He is part of the Governors Fiscal Leadership Council of the Campaign to Fix the Debt.