Deloitte: "Red Ink Rising"
Looks like even after 8 months, our Red Ink Rising report is still inspiring a significant amount of discussion. Take for example another fine work (published by Deloitte), also conveniently entitled Red Ink Rising. Not to be confused with our 2009 report Red Ink Rising that outlines a series of specific steps (such as committing to a 60 percent debt to GDP ratio by 2018) that Congress and the President should implement to ameliorate our dangerous and growing national debt, Deloitte reports on what they refer to as “The Gap”: the problem of the growing difference between what governments (localities, states, provinces, and nations) are bringing in with revenues and what they are spending in outlays. Deloitte points out that this gap cannot be solved as just an economic issue, but is “a challenge to the entire democratic government.”
Deloitte sees the road to fiscal reform passing through three distinct phases: a conceptual phase, political blueprint phase, and the transformation phase. Let’s hope that we are nearing the conclusion of the first stage, with policymakers and the public understanding that there is a problem and a need for reform, and entering into the second phase of working on a plan to get our fiscal house in order.
We commend Deloitte for not only bringing to light the problems of fiscal irresponsibility, but for choosing an excellent title as well.