Legislation and policies are needed that prioritize economic responsibility to ensure the prosperity and well-being of future generations
Federal Debt
The Federal Debt of the U.S. is huge and growing rapidly. The Debt is over $34 trillion ($100,000 per person) and projected to exceed $150 trillion ($400,000 per person) in the next 30 years. Ever more tax dollars paid by future generations will be needed to cover interest on the Debt (e.g., $1.4 trillion in 2033 and $5.3 trillion in 2053) incurred by current and previous generations rather than improving the lives of U.S. citizens. Increasing government revenues and reducing spending now are essential to protect our future prosperity. Pursuing tax evaders, who avoid paying an estimated $1 trillion a year, would be a great place to start. Policies that synergize with efforts to reduce Healthcare Costs and mitigate Climate Change should also be a priority.
Climate Change
Climate Change caused by greenhouse gas (GHG) emissions will result in more frequent and extreme weather- and climate-events (storms, fires, droughts) and reduced habitability of many areas. Such events currently cost the U.S. about $150 billion each year. Billion-dollar (inflation adjusted) events now occur about six times more frequently than in the 1980's. 2023 was the hottest year on record and the world is on a path to much higher temperatures that will cause more weather- and climate-events that will lead to unsustainable costs for insurance companies and taxpayers, and burden future generations with lower economic growth and social disruption.
Although the 2022 Inflation Reduction Act provides financial incentives for the U.S. to transition to a lower GHG emissions economy, additional policies are needed to rapidly mitigate emissions while ensuring energy security.
- Carbon dioxide emissions from fossil fuel combustion account for about 75% of U.S. GHG emissions. A steady reduction in fossil fuel use balanced by an increase in power generation from renewable and other low-carbon energy sources should be a priority.
- Methane is a potent near-term GHG and emissions from livestock, fossil fuel systems, and landfills should be controlled.
- A gradually applied, progressive fee on carbon/GHG emissions is needed to use market forces to cost-effectively drive lower fossil fuel use and GHG emissions.
- Finally, the U.S. needs a comprehensive plan to a world leader in the low-cost clean technologies of the future or risk permanently ceding dominance to China.
U.S. Healthcare Costs
U.S. Healthcare Costs average about $12,000 per person, are a primary driver of projected Federal Debt growth, and consume almost one in five dollars of Gross Domestic Product (GDP). This level of spending is greater than all other, and about twice the average of, wealthy peer countries. Further, the U.S. generally has much poorer health outcomes than peer countries including lowest life expectancy at birth and highest rates of infant and maternal mortality, obesity, avoidable deaths, and multiple chronic conditions.
Healthcare system reforms that emphasize preventive care and eliminate waste (an estimated 25 – 30% of healthcare spending) should be implemented. All the peer countries, with better health outcomes and much lower healthcare costs, have universal government/compulsory healthcare coverage for all citizens. The U.S. should transition from the current fragmented public/private healthcare insurance system to a universal coverage system and achieve similar benefits.