As the election enters its final
two weeks, The Concord Coalition today released an issue brief detailing the
“Nine Challenges for ‘09” that will be faced by whichever presidential
candidate wins the election.
As the election enters its final
two weeks, The Concord Coalition today released an issue brief detailing the
“Nine Challenges for ‘09” that will be faced by whichever presidential
candidate wins the election.
On November
4, the time for campaigning will be over, and the time for transitioning to a
new administration will begin. Whoever wins must have the flexibility to adapt.
This does not mean sacrificing principles. A President McCain can still
emphasize the importance of low taxes and low spending. A President Obama can
still emphasize the need for new domestic investments. However, they will not
be writing on a clean slate. Other presidents, most recently George H. W. Bush
and Bill Clinton, recognized the need to alter their campaign promises once it
became apparent that circumstances warranted a shift. McCain and Obama should
remain open to this possibility as well and begin preparing for it in their
public pronouncements. History has not been kind to presidents who stubbornly
cling to preconceived agendas.
Given
how rapidly events are moving, including the changing nature of the current
administration’s policies, it is fair to grant the candidates some leeway in
how they respond on the campaign trail. It is not too much to ask, however,
that they honestly confront some basic fiscal policy challenges.
The
following are nine fiscal policy challenges that will test the next president
in ‘09 and beyond.
-
The
financial crisis and its spillover into the broader economy has become the
top agenda item for the new administration, regardless of prior campaign
promises. -
Short-term
fiscal stimulus must be combined with long-term fiscal discipline. -
Fiscal
stimulus should maximize bang for the buck. -
Two
problems that led to Wall Street’s crisis —
lack of transparency and over-reliance on debt —
are problems for the federal budget as well.
-
Current fiscal policy is
already on an unsustainable track. -
Health care
reform must reduce the growth in costs.
-
Eventually, we are going to
need more revenues. -
Over the longer term, we
need to save more and consume less. - We need to budget as if it matters — because it does.
It is
understandable that during the presidential campaign the American people would
hear only of the benefits of candidates’ proposals and not of the costs. And
the campaign talk has been helpful in sketching out the rough outlines of two
very different approaches to fiscal policy. But whether it is President Obama
or President McCain, the next president will confront the reality of real economic and budgetary constraints—not just political ones—on how quickly and
vigorously he can push through the agenda he promised while campaigning. The
next president should weigh the costs and benefits, and thoughtfully prioritize
and maybe re-prioritize his plans. For the sake of the U.S. economy and the well-being of
future generations, we cannot give up on fiscal responsibility, especially not
now.
To access the issue brief, “Fiscal
Policy Beyond Election Day: Nine Challenges for ’09,”
visit: http://www.concordcoalition.org/issue-briefs/2008/1022/fiscal-policy-beyond-election-day-nine-challenges-09
###
The
Concord Coalition is a nonpartisan, grassroots organization dedicated to
balanced federal budgets and generationally responsible fiscal policy. Former
U.S. Senators Warren Rudman (R-NH) and Bob Kerrey (D-NE) serve as Concord’s
co-chairs and former Secretary of Commerce Peter Peterson serves as president.
CONTACT:
Jonathan DeWald
(703) 894-6222
[email protected]
