WASHINGTON — The Concord
Coalition has placed a full-page advertisement in this Sunday’s New York Times (August 15, 1999) urging President
Clinton and Members of Congress not to squander the surplus, and to fix Social Security
and Medicare first.
WASHINGTON — The Concord
Coalition has placed a full-page advertisement in this Sunday’s New York Times (August 15, 1999) urging President
Clinton and Members of Congress not to squander the surplus, and to fix Social Security
and Medicare first.
The ad is signed by Concord Co-Chairs and former Senators Warren Rudman (R-N.H.)
and Sam Nunn (D-Ga.), and Concord President Peter Peterson, former Secretary of Commerce. Excerpts from the ad follow:
“Until recently, you seemed ready
to move on to a bigger challenge: tackling
the vast deficits that still loom over America’s long-term future. Cost-cutting reform of Social Security and
Medicare was advancing to the top of the legislative agenda.
But then something
happened. The budget process gridlocked, and
partisan politics returned with a vengeance. Not
only did entitlement reform sink back to the bottom of the agenda, but this year both
parties are planning to squander the very surpluses that would make reform workable and
bearable. In short, you seem bent on undoing
what you’ve achieved.
We believe you are about to make a
big mistake. Your current plans to spend the
surplus are bad economics. They are based on
unrealistic assumptions. And, by enriching
ourselves at the expense of future generations, they betray the principle of fiscal
stewardship.
Absent reform, the annual bill for
federal retirement benefits is certain to explode. Near-term
surpluses that go to pay off our debt and increase national savings help to restrain the
future burden, both by reducing debt service payments and by expanding the size of
tomorrow’s economy. Any cut in surpluses
will trigger even bigger tax hikes (or last-minute draconian benefit cuts) down the road.
The Concord Coalition asks you, America’s
leaders, to steer clear of feel-good policies you know are wrong. We respectfully suggest that you go back to the
drawing board, re-engage the issue of long-term entitlement reform, and build consensus
around a plan that will put Social Security, Medicare, and other senior benefit programs
on a sustainable path. Until you do, you
should save every surplus dollar that comes your way.
By ‘save’ we mean either use the surpluses to buy back the national debt
or commit them to a new system of personally owned retirement accounts.
Let’s stop
pretending these surpluses belong to us. Conservatives
say government should return ‘our money’ to the people, while liberals say
government should spend ‘our money’ on behalf of the people. The fact is, it’s not our money at all.
Back when the budget was in deficit,
some said fiscal responsibility was too painful. You
knew better and acted with candor and courage. Today,
with the unified budget in surplus, at least for the moment, some say fiscal
responsibility is no longer necessary. Now as
before, you know better – and we hope you act accordingly,” the ad says.
