Walker told NewsMax.com that the United States risks losing its pre-eminence around the globe because of its growing status as a debtor nation. He pointed out that last year was the first year since 1933 that Americans spent more money than they took home--and, of course, 1933 was well into the Depression.
Then Walker told NewsMax.com that unless entitlements are drastically reformed the United States would face serious economic woes. When the baby boomers begin to retire the situation would be out of control unless the system was drastically reformed.
Walker is absolutely correct. That is why the 109th Congress will end up a disappointment. Politically we should have been able to tackle a reform of entitlements with a Republican President and both Houses of Congress strongly in the hands of the Republicans. Granted Senator Harry Reid (D-NV) and his band of yellow-bog Democrats would block any kind of real reform. To that Walker says "the status quo is not an option." Quite so, but how and when are these reforms to be enacted? Some Democrats argued that we need not do anything until 2040, when the Social Security fund goes into serious negative territory. That is false. Social Security begins to reach trouble in 2012, a mere six years from now. Medicare is worse. No one knows for certain the real cost of Medicare, but it is certain that costs are escalating and there is no plan to bring Medicare spending under control.
Walker argues that unless we had double-digit growth for the next 75 years we would not be able to grow our way out of the problem. Walker as head of the GAO (General Accountability Office) has a budget approaching half a million dollars. He minces no words when he tells Congress "we must make tough choices and the sooner the better." Walker wants to revise existing budget processes and financial reporting requirements, restructure entitlement programs, re-examine the base of discretionary and other spending, and review and revise tax policy and enforcement programs, including enforcement. Walker told Eberhart "everything must be on the table." When will this happen? Surely the most optimistic view of the 2006 elections does not see Republican gaining seats in both Houses. If the Democrats win control of both Houses, as I predict they will, they surely would not tackle these issues. As old as I am, I may not see the crash that can come if reforms are not enacted. But I have five children and 12, going on 13, grandchildren about whom I care deeply.
We are so irresponsible in putting the burden for all of this on future generations. My advice to both my children and grandchildren is to plan for their own retirement. The Federal Government simply will not be in a position to help by the time they are ready to retire. I just want to know which Congress ever will tackle entitlement reform. Maybe Hillary has to get elected, and like President Richard Nixon and China, Hillary will be the President who goads Congress into entitlement reform.