Lead or Get Out of the Way to Solve Debt Crisis

That ticking sound you hear is the national debt bomb. Just last week, Dallas Federal Reserve Bank President Richard Fisher stated that the United States is on a path to fiscal insolvency. He went on to say, “If we continue down the path on which the fiscal authorities are putting us, we will become insolvent; the question is when.” This is a chilling statement coming from the Federal Reserve.

With a national debt approaching $15 trillion and increasing $4 billion a day since 2007, there can be no doubt we are reaching a tipping point. Time is running out on our ability to stop the collapse of our financial solvency. We must take action now to address this unsustainable and growing debt.

On one level, every American knows we have a debt problem. While no one can comprehend a trillion dollars, you do not have to be an economist to know that we cannot continue to borrow one out of every three dollars we spend. Everyone knows this is unsustainable. However, the level of understanding of this problem is disturbing to say the least.

Recent polls demonstrate the American public’s general ignorance of our fiscal realities. A 2010 World Public Opinion survey found that Americans want to tackle deficits by cutting foreign aid from what they believe is the current level (27 percent of the budget) to a more prudent 13 percent. The real number is under 1 percent, much of which is military assistance to allies.

A Jan. 25 CNN poll revealed that even though 71 percent of voters want smaller government, vast majorities oppose cuts to Medicare (81 percent), Social Security (78 percent) and Medicaid (70 percent). Instead, they prefer to slash “waste,” the holy grail of politicians and of an uninformed electorate who believe said waste makes up 50 percent of spending, according to a 2009 Gallup poll. That is pure fantasy or wishful thinking.

Meaningful deficit reduction will take serious cuts to the entire federal budget. The problem is so severe that no portion of the budget can be off-limits. The American people need to face this reality. The issue is how do you educate 150 million taxpayers?

There are numerous advocacy groups trying desperately to educate the public as well as propose genuine solutions. One such group is Comeback America and is led by David Walker, the past comptroller of the United States. Check it out at www.tcaii.org. Mr. Walker has been preaching bipartisan fiscal responsibility for close to a decade. He states that the current fiscal debate is the equivalent of “arguing over the bar tab on the Titanic.” Walker predicts the United States will have a debt crisis “within the next two to three years” and implores Washington lawmakers to “wake up.” I believe he needs the voice of the president of the United States.

President Obama has been virtually silent on this issue. No, change that. He has not been silent; he routinely talks (and talks and talks) about the issue. The problem is that he is not doing anything to meaningfully affect the issue. Only the president can lead and educate the American people on this matter. Congress is a voice of 535 people. The president is the singular voice in the American political system to command the public’s attention.

President Obama knows this is a problem. He appointed the National Commission on Fiscal Responsibility and Reform (also called Bowles-Simpson Commission). This bipartisan group recommended meaningful reform to deaf ears. President Obama has decided it is too toxic and he will not lead on this issue. It would appear that heading into the 2012 election, he made the politically expeditious choice to let Congress, especially the Republicans, flail themselves on this issue. When they overreach due to the public’s ignorance of the issue, the president will seek a political advantage. This is not leadership – it is pure politics. Given the approaching fiscal Armageddon, this is political narcissism.

The president must address this issue. This is his chance to demonstrate true leadership and the bipartisanship he talks about all the time. The path forward is hard, but it can be done. If I could bend the president’s ear, this is what I would propose:

Build on the Bowles-Simpson Report. Set bold and meaning targets.

Educate the American people. Take every opportunity to deepen the public’s awareness of the magnitude of the problem.

Take the lead on reforming Social Security and Medicare. Only a Democrat can reform these key programs. It is political suicide for a Republican to touch them.

Join with key Republican hawks and the Tea Party to push for fiscal reform in the military. For a Democrat, proposing military cuts is political hari-kari. Only the Republicans can do this.

Set meaningful spending reductions for the discretionary budget and let Congress duke it out.

Follow all of this with more education. The key to this process is to ready the American people for meaningful change. They must support Congress and you in this very difficult effort.

This is the president’s opportunity to lead. Given the magnitude and urgency of the problem, it is time for the president to lead or get out the way. Our financial time bomb is ticking away.

Kirk Hancock is a member of LaGrange Writers Group.

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