Statement from Foundation Chairman Pete Peterson on the 2013 State of the Union Address
“President Obama rightly recognized the importance of both economic growth and deficit reduction in his State of the Union address. While some progress has been made, America still faces a severe long-term debt problem that must be resolved. Recent reforms have done very little to address our long-term structural deficits — debt is still on pace to reach and exceed 200 percent of GDP, which is well beyond anyone’s definition of dangerous and unsustainable.
“Economic growth and long-term debt reduction go hand-in-hand and should be top priorities for the President and Congress. We should act now to put in place a comprehensive plan that reduces deficits once the economy recovers, which would improve confidence and boost our economy in the short term, and strengthen American economic prosperity for the long term.”
Further Reading
How Does Government Healthcare Spending Differ From Private Insurance?
Government insurance programs, such as Medicare and Medicaid, made up 45 percent, or $1.9 trillion, of national healthcare spending.
National Debt Could More than Double the Size of the Economy
GAO’s findings add to a chorus of nonpartisan evidence and analysis showing that action is needed to improve our fiscal outlook.
How Do Quantitative Easing and Tightening Affect the Federal Budget?
The Federal Reserve plays an important role in stabilizing the country’s economy.