Where are We Going, And Why Are We in this Handbasket?

In a statement to Congress, US Comptroller General David Walker warns that the US is headed for trouble in the way we're spending money and cutting taxes:

"Simply put, our nation’s fiscal policy is on an unsustainable course and our long-term fiscal gap grew much larger in fiscal year 2004. Long-term budget simulations by GAO, the Congressional Budget Office (CBO), and others show that, over the long term we face a large and growing structural deficit due primarily to known demographic trends and rising health care costs. Continuing on this unsustainable fiscal path will gradually erode, if not suddenly damage, our economy, our standard of lliving, and ultimately our national security. Our current path also will increasingly constrain our ability to address emerging and unexpected budgetary needs and increase the burdens that will be faced by future generations."

Walker testified that the GAO found that economic growth alone and minor changes to tax and spending policies won't fix the problem either. (GAO)