How to Run Our Government Without Piling Up Too Much Debt

Somewhere along the line our country has fallen into a pattern in which running large budget deficits has become our normal operating procedure. This means that most years in recent memory we’ve spent much more in government programs than we are willing to raise in tax revenues. We’ve then borrowed money to cover the balance. The result is a mammoth and growing federal debt that is now approaching $10 trillion — growing even more rapidly because of our nation’s current economic difficulties, rapid health care cost growth and tens of millions of baby boomers on the verge of retirement. (Find out more about our "Choicework" discussion guides, or download the PDF version of this choicework guide).


Medicare, Medicaid and Controlling Health Care Costs

Since its inception in 1965, Medicare, the national health-insurance plan for the elderly, has transformed health care for the nation's retirees and the disabled. Nearly every elderly American is covered by the program, dramatically improving both the health and financial well-being of Americans senior citizens. Unfortunately, several powerful trends spell financial trouble for Medicare in the near future. The same pressures face Medicaid, our health care program for low-income Americans. (Find out more about our "Choicework" discussion guides, or download the PDF version of this choicework guide).


More About the Federal Debt

The federal debt has two different components. One is “debt held by the public,” which primarily consists of the U.S. Treasury bonds that anyone can buy. The second component is “intergovernmental debt,” where one part of the federal government borrows from another part.

What is Choicework?

Choicework discussion guides offer a different way of approaching problems, helping people to consider alternatives -- and honestly face the potential tradeoffs and drawbacks.

Making Sure our Government Manages our Money Responsibly

Bringing the federal debt under control will mean making tough choices, such as cutting popular programs or raising taxes. But people will only be willing to make such hard choices if they trust their leaders to act responsibly, so that their sacrifices are not wasted. To help you think through the best way to do this, we describe several different ways of attacking the problem. (Find out more about our "Choicework" discussion guides, or download the PDF version of this choicework guide).


Social Security, the Budget and an Aging Population

Social Security, the federal retirement system, is one of the most popular government programs in U.S. history. Unfortunately, it’s also in trouble and no consensus has emerged, either in Washington or among the public at large, on what approach the nation should take to fix it. Let's consider some options. (Find out more about our "Choicework" discussion guides, or download the PDF version of this choicework guide).


Heading for Trouble

The U.S. government is living beyond its means -- far beyond its means. As a result, we’ve built up a staggering amount of national debt and unfunded federal liabilities, potentially made much worse by the current financial crisis. Worse yet, we have put ourselves in this fiscal hole at exactly the wrong time, because we are committed to paying enormous amounts in Social Security and Medicare as the huge baby boom generation starts to retire over the next few years.

How This Affects You

Deep budget cuts, deep benefit cuts, crippling tax rates, higher interest rates for everybody, hyperinflation, economic decline — these are the all-too-real implications of our growing fiscal crisis.

Multimedia

Our short multimedia presentations will tell you more about the basic facts behind the nation’s financial challenges. The Deficit, the Debt and Disaster Ahead runs through the basic problems facing the country, while Follow the Money gives a quick rundown on how the federal government spends its money. Americans Deliberate our Finances and our Future takes you inside the ChoiceDialogue sessions where people from all walks of life discuss what we can do to solve the problem. This is just a start – we’ll have more multimedia to come as the Facing Up initiative moves forward.

Facts & Figures

It can seem daunting to grasp some of the problems facing the nation’s finances, especially when government spending is in the trillions, but the core concepts are actually pretty simple to understand. Here, we break down the basic numbers and percentages and put them in context, drawing upon the data and resources of our partners, as well as invaluable sources like the Congressional Budget Office, the Government Accountability Office, and the White House Office of Management and Budget.

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