Dr. Douglas Elmendorf, Director of the Congressional Budget Office (CBO), does not envy senators and the choices they must make in order to deal with the country's growing deficits' effect on the economy.
Elmendorf testified before U.S. Senator Mike Enzi, R-Wyo., and his Senate Budget Committee colleagues today that deficit reductions now "are good for the economy in the medium and long run and that is one of the difficult tradeoffs that you and your colleagues face."
Enzi believes short-term and immediate difficulties associated with deficit reduction will have to be endured if we're to avoid devastating consequences later. He pointed out that major drivers of government spending, entitlements like Social Security and Medicare, continue to run deficits.
"I am concerned that our nation is on an unsustainable fiscal path. The CBO's report makes it clear that while we might see a short-term reduction in deficits, the long-term outlook is far from positive. We need to take steps now -- reforming our entitlement programs and our broken tax code -- to lay the foundation for long-term prosperity for all Americans," Enzi said.