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165 of 171 people found the following review helpful:
4.0 out of 5 stars
Not just talking, doing, January 19, 2010
This review is from: Comeback America: Turning the Country Around and Restoring Fiscal Responsibility (Hardcover)
Let me begin by disclosing that I am familiar with the core point of Comeback America, namely that the government must get its fiscal house in order or this country is headed for a big fall, and heartily agree with it. Thus, I attended one of the Fiscal Wake-Up Tour sessions (Baltimore, 10/29/07), heard David Walker talk on other occasions, and have watched I.O.U.S.A. at least four times.
Probably most people agree with the point intellectually, but prefer not to think about it. After all, the enjoyment of government deficits is in the here and now, while the day of reckoning is perceived to be years in the future. Sounds like someone else's problem.
As Walker points out, however, the victims of continuing fiscal irresponsibility could include innocent souls who are near and dear. Thus, to rephrase an old Washington saying, "Don't tax you, don't tax me, tax that baby on your knee." Consuming now and leaving the bill for future generations is not simply irresponsible; it is immoral. Moreover, the roar of the waterfall up ahead is getting steadily louder as the ship of state glides downstream.
The deficit problem has two dimensions, as this book clearly explains. The current deficits and debt are bad enough, marking steady deterioration in the government's fiscal position over the past decade and exacerbated by the current recession. The long-term fiscal gap, fed by a steady increase in "entitlement" outlays (Social Security, Medicare and Medicaid), is worse. As of 9/30/09, the government (and by extension this country) was in a fiscal hole of some $63 trillion, a total of liabilities and unfunded promises so vast that it is hard to comprehend, which was "rising every second of every day."
Do not doubt these numbers, by the way. Walker is a CPA by training, formerly served as the U.S. Comptroller General (among other positions), and knows whereof he speaks.
This is hardly the first book to warn that the United States is on the road to financial disaster. See, e.g., "Financial Reckoning Day," Bonner & Wiggin, 2003, or "The Coming Generational Storm," Kotlikoff & Burns, 2004.
But the author's conviction that the American people must and can take action to avert the disaster is refreshing, and he offers some specific ideas for doing just that. Among them is appointing a Fiscal Future Commission, which would be empowered to propose sweeping changes in spending, entitlements and taxes that Congress would be committed to accept on an up or down vote.
The narrative of how the fiscal problem developed is a little hard on Bush 43, in my opinion, and a Republican-controlled Congress contributed to fiscal gains during the Clinton years. The commentary on President Obama's fiscal track record thus far seems optimistic, although Walker does note a possible gap between words and actions. Forget all that, however, because both parties contributed to the problem and playing the blame game can solve nothing.
Specific ideas are offered for revamping Social Security, overhauling the healthcare system (instituting new programs without fixing Medicare and Medicaid is no answer), raising taxes but also making them simpler and fairer, reducing the trade deficit, getting control of the Pentagon, and transforming government. Most people will differ with some of the ideas, certainly I do, but remember that they are suggestions rather than "must do's." If the American people start thinking seriously about what kind of government they want and are willing to pay for, we should all be able to live with the results.
Maybe this sounds a bit boring. "When you picked up this book," Walker observes in the epilogue, "you knew you weren't buying a light read for the beach - or a typical Washington tell-all full of espionage, sex scandals, war planning, and gladiators jousting in the political arena."
But I recommend that people read and reflect on Comeback America, and then act on the author's invitation to "put this book down, fellow citizens" and "let's get to work."
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96 of 101 people found the following review helpful:
5.0 out of 5 stars
Truth and Potential Consequences, February 1, 2010
This review is from: Comeback America: Turning the Country Around and Restoring Fiscal Responsibility (Hardcover)
My name is Robert L Rodriguez, CEO of First Pacific Advisors. I am a three time winner of Morningstar's Mutual Fund Manager of the Year Award for both domestic equities and bonds and my equity fund, FPA Capital Fund, was the number one diversified equity fund for the past 25 years ended September 30, 2009. I have used and referred to Mr. Walker's work for years and consider him one of the few that I would trust who has come out of Washington. His book is an easy read with a very straightforward analysis of the critical fiscal problems facing this country. He proposes several realistic recommendations to start addressing these problems. The greatest service he does is showing why light hearted, feel good sounding "solutions" will not and cannot do the job. Neither the Republican or the Democratic parties have been serious about discussing these challenges nor have they been willing to take real concrete actions toward solving these critical issues. If "we the people" do not start taking action and requiring our representatives to tackle these existing issues now, we will face a far more serious fiscal and federal crisis than the one we have just gone through in the not too distant future. As one of the few professionals who has been nationally recognized for having warned about the oncoming credit crisis, I believe "Comeback America" provides a workable template of resolution that can be begun today. Please share this important book with friends, family and your elected representatives. Your children and your children's children will thank you for it. For the record, I have no economic interest in this volume other than I believe David M. Walker's message needs to be heard more broadly. Thank you for reading my thoughts.
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46 of 52 people found the following review helpful:
4.0 out of 5 stars
Lots of Work To Do -, January 21, 2010
This review is from: Comeback America: Turning the Country Around and Restoring Fiscal Responsibility (Hardcover)
David Walker, U.S. Controller General from 1998-2008, believes that absent significant reforms to current government programs and policies, federal taxes could double by 2030. His goals for the book are to explain our fiscal problems in ways that everyone understands, draw a road map for getting out of the mess, and provide tools with which to evaluate programs. "Comeback America" is well-written, non-partisan, and important reading.
Most Americans probably believe that our national debt is somewhere around $12 trillion. However, that excludes other programs that the U.S. has insufficiently funded - most notably Social Security, Medicare, and Medicaid - thus, a true total of $56 trillion in federal government obligations - Walker's focus. (State and local governments have another unfunded $0.5+ trillion in unfunded liabilities for retiree benefits, per the U.S. Government Aaccounting Office, 11/09.)
Mandatory programs (Social Security, Medicare, and Medicaid) took up over 60% of the $3 trillion 2008 federal budget, and we're currently running a $1.4 trillion deficit. This deficit almost doubled under Bush '43, and could double again in the next 8-10 years. By 2040, Walker believes federal tax revenues will only cover interest on the debt, and Medicare + Medicaid - if nothing changes.
Walker recommends starting the cure with Social Security. Its trust funds will run dry in 2037, and then require cutting benefit levels to 24% of current. He proposes to trim benefits for the middle and upper-income recipients (35% of retirees rely on Social Security for over 90% of their income), trim COLA increases, raise retirement ages, increase the cap on taxable Social Security wages, and require supplemental savings accounts totaling about 2-3% of payroll incomes.
As for health care, Walker proposes budget limits, malpractice reform, encouraging healthier lifestyles, emphasis on capitation payments, evidence-based practice and reimbursement, banning prescription-drug advertising, limiting what is covered, negotiating drug prices paid for Medicare, and charging more for higher-income people for Medicare Part A.
Revenue would increase by ending exclusions for health care, retirement plans, state/local taxes, mortgage interest, charitable deductions. Additional revenue would be raised through a consumption tax that exempted food, clothing, and shelter - Walker points out that our current income tax allows 40% to nothing, the top 20% pay 69% of the total, and two-thirds pay more in payroll taxes (Social Security + Medicare) than income tax, and does not believe that is equitable.
Defense consumes about 20% of the federal budget, and Walker believes much is wasted. For example - more than 20 command units must approve activation of as few as 20 National Guard or Reserve members.
Finally, Walker recognizes that these huge debts are the result of a dysfunctional democracy, and suggests a new Constitutional Convention and term limits as possible cures.
Bottom Line: "Comeback America does a good job of communicating the hidden, almost secret size of the federal debt. The author, however, errs recommending improvement efforts start with Social Security - unfunded Medicare and its associated prescription drug benefits are larger than unfunded Social Security obligations. Walker's expense reduction recommendations are also rather vague, though probably to avoid readers becoming sidetracked by debates over individual proposals. Nonetheless, "Comeback America" should be read by everyone. Clearly we have a lot of work ahead of us.
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