Washington
Welcome, graduate, to the working world. To a new career. A land of opportunity.
Don’t get too attached to your paycheck.
We will be taking your money to pay our debts.
The splendid days of June are now snapshots on your cellphones. You’ve recovered from the graduation parties, the one- last-beach trips, the proms and champagne and the sugar high of sheet cakes.
Maybe this finds you in a new town, trying to scrape together a security deposit, and first and last month’s rent.
Or gathered over beers at night, comparing notes on your boss who’s such a jerk.
Or back from the honeymoon, assembling Target furniture and wondering what you got yourself into.
You know what America has for you?
Best wishes, and a bill for $25,000.
I’m not talking about the new bicycle you put on your Visa card. Or what the bank gave you to buy that Dodge pickup. Or even your college loans, about to come due.
That’s chump change. To really be irresponsible in America, to really get wasted on other people’s money, nothing beats the U.S. Congress and the men who serve as president.
The national debt is $7.8 trillion and, through the miracle of compound interest, rising every day. You are one of 296 million Americans. You can do the math.
Maybe you saw the headlines last week suggesting that your country is wising up, cutting its swollen budget deficit from $412 billion in 2004 to $313 billion in 2005.
At both ends of Pennsylvania Avenue came the sounds of politicians patting themselves on the back.
Don’t join in.
The projected deficit is “just” $313 billion because Congress raided the Social Security system for $173 billion in surplus funds this year. That $173 billion is still owed to retirees, and that makes the actual annual deficit almost $500 billion.
Besides, even a short-term uptick won’t compensate for your nation’s serious long-term problems.
“Our nation’s financial condition is much worse than advertised,” said David M. Walker, the U.S. comptroller general, when asked about the White House’s rosy budget forecasts. “We are adding debt at near record rates.
“Our long-term deficit has worsened significantly,” said Walker, “and our long-term liabilities and commitments have increased dramatically.”
Walker is the man who keeps the government’s books. He said this last week as Congress punted – for at least a month or two, and possibly for good – its vaunted plans to restore the Social Security system to a sound fiscal basis.
For a new graduate, the problems of Social Security and retirement seem far off. But they will affect you long before senility, arthritis – or even baldness.
As your parents’ generation retires, today’s Social Security surpluses will dwindle and vanish, and then this program, too, will slide into the red. And that is but a slice of the problem, as Medicare, Medicaid and health care costs continue to soar.
“We face a demographic tsunami,” Walker said, “which, unlike most tsunamis, will never recede.”
If Washington can’t discipline itself, Walker said, interest rates will rise, investment will decline, and foreigners will own more and more of America’s assets.
On trade and foreign policy matters, we are already “losing our leverage” with China and other economic powers, Walker said, “because they hold part of our mortgage.”
Ultimately, Walker predicted, the government will raise your taxes or print more money, using inflation to devalue its debts. Either route will hurt your standard of living.
And so, graduate, you have a choice.
You can join the conspiracy of silence, ignore your country’s danger, and join us in eating America’s seed corn.
Or you can show your mettle. Demand reform. Shame your elders. Vote for change.
And here’s a tip: Don’t wait. Act now, while the baby boomers are still making money and paying taxes.
Make them an asset, instead of your burden. But that should be clear to a smart kid like you.
John Aloysius Farrell’s column appears each Sunday. Comment at the Washington and the West blog (denverpostbloghouse.com/ washington) or contact him at jfarrell@denverpost.com.
