CFK reports from: A forum on the deficit and its impact on younger generations
Organized by: House Budget Committee Ranking Member John Spratt (D-SC) and Democratic members of the House Budget Committee.
Where/When: Rayburn House Office Building, Washington, D.C., September 13, 2004

A new Democratic Staff of the House Budget Committee report, entitled “Reality Bites: Why Younger Generations Should Be Concerned About the Deficit” was released yesterday at a youth forum at the Rayburn House Office Building in Washington, DC.

Before detailing the report, Democratic House budget leaders, including ranking member Rep. John M. Spratt (D-SC), noted their concerns about the effects they believe the fiscal year 2004 $422 billion will have in ensuing years for America's youngest citizens.

“Deficits represent the failure of the current generation to confront the real choices facing our society,” according to their report. “As a result of this failure, today’s young adults in their 20s and 30s, as well as their children and grandchildren, will be forced to repay the record amounts of debt the government is borrowing today.”

The report concludes that the federal deficit reached this record level due to Bush Administration spending increases on top of large tax cuts: “While the global war on terror and changing economic tides each played a role, a major factor was the Administration’s decision to embark on an agenda of tax cuts, without offsets, heavily tilted toward the wealthiest Americans.”

Daniel J. Mitchell, Ph.D., a fellow with the Heritage Foundation, provided a counterpoint to the Democrat’s concerns. He told the Committee that the size of the federal government is the real problem young citizens should be concerned about, not the size of the deficit. He said that the deficit is the result of too much spending, not tax cuts. He argued that tax cuts actually spur the economy and therefore help make the country stronger.

Retirement Concerns in High School?
Because many of the nation’s baby boomers are reaching retirement age, Democratic officials say that the deficit – projected by the Congressional Budget Office to reach $13.3 trillion by the end of 2014 – is of more concern than ever because of the concurrent effects of an overburdened Social Security and Medicare system on younger Americans. “We [babyboomers] are selfish enough that we will never allow Social Security and insurance to be cut back,” noted Rep. James Moran (D-VA).

Peter R. Orszag, Ph.D., a fellow with the Brookings Institution, indicated that the Bush Administration tax cuts will ultimately cost more than Social Security and Medicare costs combined in the time period that the tax cuts – if not retracted – play out.

Mitchell’s response to the Social Security issue was to point out Republican recommendations to privatize Social Security in the form of an individual retirement account (IRA) system.

Youth Political Awareness
The contradictory points of view were presented to an overflowing audience of twenty-something interns, students and reporters. Via email messages sent earlier in the week, Democratic House officials encouraged interns and other young people to attend the forum.

Hans Riemer, the Washington Director of Rock the Vote, a nonpartisan campaign that supports youth voter participation, provided an overall picture of some of the economic challenges that younger Americans are facing. He referred to a study by the 18-to-35 nonpartisan voter education organization, which found that 10 percent of 20-24 year-olds are actively looking for jobs and cannot find them.