STATE OF THE UNION’S FINANCES:Gene Steuerle’s Testimony Before the House Budget Committee
The urgency of our fiscal situation has recently been intensified by the immediate revenue and spending demands imposed by the collapse of several major financial institutions. This collapse imposes large costs on our citizens as homeowners, workers, and, now, taxpayers. There are disturbing parallels between the factors that have contributed to this mortgage- and debt-related crisis and the deteriorating fiscal outlook of the U.S. government. Most importantly, there is a dangerous disconnect between the parties who benefit from various practices and those who pay the price, while both public and private sectors failed to mitigate related risks in the face of clear and compelling warning signals.