The Campaign to Fix the Debt is a non-partisan campaign to put America on a better fiscal and economic path.
We come together from a variety of social, economic and political perspectives, united in a common belief that America’s growing federal debt threatens our future and that we must address it.
The Campaign will mobilize key communities in your state—including leaders from business, government, and policy—and voters across America who expect our elected officials to implement a comprehensive plan to fix our long-term debt and deficits.
In our history, America has always been able to come together to tackle its greatest challenges, and it’s time to do it again.
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Overview of U.S. Fiscal Challenges
The path we’re on:
- Over the past 40 years, the size of U.S. public debt has averaged below 40 percent of the economy, after having peaked at over 100 percent during WWII.
- Today,debt is more than 70 percent of our economy ($11.1 trillion), but is set to continue to rise even after the economy recovers from the recent downturn. The debt is on track to exceed 100 percent of the economy next decade and exceed 200 percent by the 2040s.
- Increased spending on the wars in Iraq and Afghanistan, unpaid for tax cuts, unpaid for stimulus and job creation bills, and the economic downturn have automatically pushed up spending and brought down revenues, increasing debt. In the long-term, debt will rise from other factors: health care and retirement costs growing faster than the economy and an outdated tax code that brings in insufficient revenues.
Consequences of rising debt:
- Rising debt will slow economic growth. Researchers have found that once debt reaches certain thresholds, some of which we have already passed, the economy grows notably slower. A slower economy will reduce our standard of living.
- Ultimately, we will face an economic crisis if we don’t change course – perhaps along the lines of what several European countries have experienced recently.
- Higher debt means leaving the next generation saddled with it, reducing their budget flexibility and the ability of the United States to respond to crises in the future – including economic, natural, and security emergencies.
Benefits of debt reduction done right:
- Policymakers need to enact a plan that stabilizes debt as a share of the economy and then puts it on a clear downward path this decade.
- Smart and gradual debt reduction can reverse all of the negative economic and generational consequences of elevated and rising debt.
- There are many proposals and ideas for policymakers to pick and choose from, including: the Simpson-Bowles Commission, Domenici-Rivlin task force, the Super Committee discussions, the Biden negotiations, and others.
Take Action Today! Tell your legislators to act now to fix the debt!