Question

1. Explain the budgetary effects of intention to shift some measure of fiscal responsibility away from Washington and place more decision-making power in state capitals.

Answer 1

The symbol of The Concord Coalition is an American minuteman, a patriot standing watch over a small child. This symbol reflects our belief that fiscal responsibility is as much of a moral duty as it is an economic concern. As Concord's founding Co-Chair Senator Paul E. Tsongas put it, "The bond between parent and child is nature's strongest. Providing for the well-being of the young is how every generation of Americans undertook their stewardship."

Fiscal responsibility is essential to creating a better, stronger, more prosperous nation for the next generation. The choices we make today -- or fail to make -- will determine what kind of future our children and grandchildren inherit 20 and 40 years from now.

The nation's economic future and fiscal responsibility are directly linked. There is a tie between budget deficits today and what society can enjoy tomorrow. Eliminating the deficit is an important first step. The larger challenge, however, is to reform our age-related entitlement programs, which are projected to grow at an unsustainable rate as the population ages. Facing up to both the short and long-term fiscal challenges will help put the nation on a path to lasting prosperity and a rising standard of living. If, on the other hand, we fail to quickly address the growing imbalance between federal commitments and available revenues, we will squander the only opportunity to get our finances in order before the aging of America makes our fiscal situation far more difficult. Doing so would be to ignore every principle of public finance, generational equity, and long-term economic stewardship. Deficits matter.