Stabilize the U.S. Debt: An Online Exercise in Hard Choices
Budget Simulator
It’s no secret that America’s finances are a mess. So, what can be done about it? The problem has been mounting for a long time and it cannot be fixed overnight, but we need to start addressing it now.
The debt of the United States is rising to unprecedented – and unsustainable – levels. According to the Peterson-Pew Commission on Budget Reform, under reasonable assumptions, the public debt of the U.S. is projected to grow to 85% of GDP by 2018, 100% by 2022, and 200% in 2038. No country can support debt at these levels without huge costs to its standard of living at a minimum and most likely a severe crisis.
Drastic action now would threaten the already fragile economic recovery. But failing to convince markets and creditors that the U.S. is serious about reducing its debt in the longer term would cause interest rates to rise dramatically and likely trigger a fiscal crisis.
We need to establish a fiscal goal and commit as a nation to achieving it. The Peterson-Pew Commission recommends a goal of stabilizing the debt at 60% of GDP by 2018 in the report, Red Ink Rising. We must set an ambitious, yet attainable, goal that Americans can support. See more about the reasoning behind this goal on the FAQ page.
This simulation was designed to illustrate the tough budget choices that will have to be made and to promote a public dialogue on how we can set a sustainable fiscal course. How do your choices stack up? Good luck.
YOUR CHALLENGE: Stabilize the U.S. Debt at 60% of GDP by 2018.
There are 8 categories where your choices will affect the debt. Negative numbers next to a choice indicate how much the debt will be reduced, positive numbers add to the debt. Use the “Next” and “Back” buttons to navigate to each section; do not use your browser’s navigation arrows. Click the “Done” button when finished making all the choices you want. The bar graph on the right will chart how your choices affect the debt-to-GDP ratio relative to the 60% goal. Visit the FAQ page for more on how the game works.
Click HERE to continue
It’s no secret that America’s finances are a mess. So, what can be done about it? The problem has been mounting for a long time and it cannot be fixed overnight, but we need to start addressing it now.
The debt of the United States is rising to unprecedented – and unsustainable – levels. According to the Peterson-Pew Commission on Budget Reform, under reasonable assumptions, the public debt of the U.S. is projected to grow to 85% of GDP by 2018, 100% by 2022, and 200% in 2038. No country can support debt at these levels without huge costs to its standard of living at a minimum and most likely a severe crisis.
Drastic action now would threaten the already fragile economic recovery. But failing to convince markets and creditors that the U.S. is serious about reducing its debt in the longer term would cause interest rates to rise dramatically and likely trigger a fiscal crisis.
We need to establish a fiscal goal and commit as a nation to achieving it. The Peterson-Pew Commission recommends a goal of stabilizing the debt at 60% of GDP by 2018 in the report, Red Ink Rising. We must set an ambitious, yet attainable, goal that Americans can support. See more about the reasoning behind this goal on the FAQ page.
This simulation was designed to illustrate the tough budget choices that will have to be made and to promote a public dialogue on how we can set a sustainable fiscal course. How do your choices stack up? Good luck.
YOUR CHALLENGE: Stabilize the U.S. Debt at 60% of GDP by 2018.
There are 8 categories where your choices will affect the debt. Negative numbers next to a choice indicate how much the debt will be reduced, positive numbers add to the debt. Use the “Next” and “Back” buttons to navigate to each section; do not use your browser’s navigation arrows. Click the “Done” button when finished making all the choices you want. The bar graph on the right will chart how your choices affect the debt-to-GDP ratio relative to the 60% goal. Visit the FAQ page for more on how the game works.
Click HERE to continue
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1 Comments:
Here is my attempt:
You reduced the debt to 60 percent of GDP, but not until 2022. Hopefully, you will have done enough to avert a fiscal crisis.
Anyone want to bet I did better than Obama would do?!
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