
PART V
“RUNNING ON EMPTY”
Peter G. Peterson is a former Chairman of the Federal Reserve Bank in New York. He critiqued the state of the national debt and congressional budgeting process in his book, Running on Empty. He calls for a comprehensive long-term budget for the next 50 years and not just one year at a time. He calls for Congress to enact long term cost control reforms in all its current major programs. He emphasizes the need to use the “accrual accounting” method that is so common in the private sector. It tracks long term liabilities but “Congress pretends never to have heard of it.” ( ). They are allowed to ignore some unfunded retirement obligations and leave over a trillion dollars off of its annual deficit calculations. This is part of the illusory accounting methods that make government less than transparent.
Peterson also calls for a “generational impact statement” that calculates and discloses the long-term effects of any new spending or tax bill. He notes that “what often makes marriage couples stop fighting is a good look at their kids. Americans need to ask [their] leaders . . . to do the same – to look at our kids.” (p. 224-225). He further adds:
“Citizenship means looking out for one’s neighbors and giving a hand to those less fortunate. But it also means understanding the big issues of one’s time, seeing past the hype and spin, and working together to hold political leaders accountable. Your time is coming, and when it does, your generation, like every generation, will get the government it deserves. If it is distracted by pseudo-issues and gridlocked by special interest, it will be because too few of you paid attention and made your voices heard.
Posted by: LaVar Christensen
3 Comments already...






There is no limit to what we would do for our children if we had unlimited resources. What parent could ever deny their children any available means or asset that would enhance their growth and learning? However, we do not have unlimited resources and when it comes to our schools, taxpayers do not have unlimited funds. Thus, thrift, prudence and prioritizations are continually required.