News HeadlinesIn the Sovereign Fiscal Responsibility Index, the Comeback America Initiative ranked 34 countries according to their ability to meet their financial challenges, and the US finished 28th, said David Walker, head of the organization and former US comptroller general...
"Here's the good news: Some of the top countries had their own fiscal challenges, made reforms and now rank highly," Walker said. "If we adopt the recommendations of the National Fiscal Responsibility and Reform Commission or ones that have similar bottom-line impact, we move from 28 to 8."
In short, the U.S. faces significant long-term fiscal challenges. However, early action on credible fiscal consolidation would be beneficial. IMO, the FY 2012 budget package should be shelved. It is a status quo document that addresses none of the structural drivers (mandatory spending programs) of the nation's long-term fiscal challenges. If political leaders cannot find it within themselves to design a credible fiscal consolidation package, they should adopt the recommendations of the Fiscal Responsibility and Reform Commission.