01/25/2010 - From Afghanistan to China to Copenhagen, the actions of President Barack Obama have international significance. However, the greatest worldwide implications will stem from a domestic issue that he must not ignore: our nation’s mounting government debt. The U.S. has a debt problem, and the world is watching. The administration’s response will dictate not only the standard of living of future generations of Americans, but also their country’s global standing.
Just as the White House recently said that it would not have an open-ended commitment when it announced its new Afghanistan strategy, the United States cannot have an open-ended reliance on deficit finance. It needs a fiscal exit strategy that puts the budget on a sustainable path, keeps the economic recovery on track, and avoids a future fiscal crisis.
Holtz-Eakin, former director of the Congressional Budget Office, and former Rep. Jones (D-Okla.), who chaired the House Budget Committee and who was also ambassador to Mexico, are members of the Peterson-Pew Commission on Budget Reform www.budgetreform.org.
Read the full op-ed We Must Tackle the Debt Threat Now on the The Hill Web site.