SOLUTIONS
DO
EXIST
Short-term deficits are down, but serious long-term fiscal challenges remain.
Fortunately, many good solutions exist.
THE PETER G. PETERSON FOUNDATION
5
ASKED EXPERTS FROM
LEADING
POLICY
ORGANIZATIONS
REPRESENTING VIEWS FROM ACROSS
THE POLITICAL SPECTRUM TO PUT FORTH
THEIR PLANS FOR STABILIZING AMERICA’S
FISCAL OUTLOOK
THE RESULTS?
SOLUTIONS INITIATIVE: PROJECTED FEDERAL DEBT THROUGH 2040
DEBT HELD BY THE PUBLIC (% OF GDP)
OUR
UNSUSTAINABLE
FISCAL PATH*
200%
Each group stabilized
America’s long-term debt over
the decades to come. While
each plan is different and
reflects each organization’s
policy priorities, they all
successfully put the nation on
a more sustainable fiscal path.
150%
BIPARTISAN
POLICY CENTER
100%
AMERICAN
ENTERPRISE INSTITUTE
ECONOMIC
POLICY INSTITUTE
50%
CENTER FOR
AMERICAN PROGESS
0%
2015
2020
2025
2030
2035
2040
AMERICAN
ACTION FORUM
*Source: CBO’s AFS
OUR LEADERS HAVE MANY VIABLE
THE PLANS DEMONSTRATE THAT
MANY SOLUTIONS
POLICY OPTIONS TO BUILD
TO OUR
A SOLID FISCAL FOUNDATION
FISCAL AND ECONOMIC CHALLENGES
FOR THE NATION, WHICH WILL ENABLE THE
ECONOMIC OPPORTUNITY THAT IS THE BASIS OF
EXIST
THE AMERICAN DREAM
BREAKING DOWN THE PLANS
AMERICAN
ENTERPRISE
INSTITUTE
AMERICAN
ACTION FORUM
SOLUTIONS INITIATIVE:
PROJECTED FEDERAL SPENDING
& REVENUES THROUGH 2040
25%
25%
20%
20%
SPENDING
0%
0%
BIPARTISAN
POLICY CENTER
2020
2025
2030
2035
2015
2040
% OF GDP
% OF GDP
30%
SPENDING
30%
25%
20%
0%
0%
0%
2030
2035
2040
2015
PROJECTED DEBT HELD BY THE PUBLIC
IN 10 YEARS
2035
2040
% OF GDP
SPENDING
REVENUES
20%
2025
2030
REVENUES
SPENDING
20%
2020
2025
25%
REVENUES
2015
2020
ECONOMIC
POLICY
INSTITUTE
CENTER FOR
AMERICAN PROGRESS
25%
SPENDING
REVENUES
REVENUES
2015
30%
% OF GDP
30%
% OF GDP
30%
2020
2025
2030
2035
2040
2015
2020
2025
2030
2035
2040
(AS A PERCENTAGE OF GDP)
AAF
AEI
BPC
CAP
EPI
69.4%
76.7%
71.3%
66.6%
58.4%
62.7%
75.5%
45.8%
54.2%
IN 25 YEARS
15.9%
MEMOS TO THE NEXT
PRESIDENT & CONGRESS
THE
GOOD
We also asked each group to draft a memo for the next
President and Congress that presents the group’s vision
and goals, together with the top three steps that
policymakers need to take to achieve them.
NEWS
AAF
I S T H AT
BUILDING A
SOLID
SUSTAINABLE LONG-TERM
FISCAL
WE CAN CHOOSE A
BETTER
PATH
AEI
• Tax reform
• Entitlement reform
• Immigration reform
• Make healthcare programs
more efficient
• Better target Social Security
• Switch to a growth-friendly
consumption tax
BPC
• Reduce healthcare cost growth
• Enact pro-growth tax reform
• Invest in infrastructure, research,
and defense
CAP
• Grow the economy by strengthening
and expanding the middle class
• Slow healthcare cost growth
• Increase federal revenues
EPI
• Increase spending for public
investments
• Strengthen America’s social
welfare system
• Raise additional revenues
FOUNDATION
WILL SUPPORT
A STRONG AND PROSPEROUS AMERICAN ECONOMY
THAT HAS RESOURCES TO
INVEST IN
THE FUTURE OF
OUR CHILDREN
UNLEASH
CAPITAL THAT OUR
BUSINESSES NEED TO GROW
Read more at
pgpf.org/solutions-initiative-iii
PROVIDE
A RELIABLE SAFETY NET FOR
OUR VULNERABLE CITIZENS