Fix the Debt

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Fix the Debt is a group of executives and former legislators who campaign for deficit reduction and tax reform. The Campaign to Fix the Debt was founded in July 2012 by Erskine Bowles and Alan Simpson. [1] [2] [3] In September 2012 they wrote, "If we can't get members of Congress to put aside their ultra-partisanship and pull together rather than apart, we face the most predictable economic crisis in history." [4] The Campaign comprises a variety of socio-economic and political views and engages business and government leaders alongside American citizens. [5]

Contents

Leadership

Fix the Debt is chaired by Judd Gregg and Edward Rendell. In March 2017 they wrote of rising national debt, "Both parties have contributed to the problem, and leaders in both are unwilling to ruffle feathers and make the tough choices needed." [6] They said of gross national debt exceeding $22 trillion in February 2019, "This milestone is another sad reminder of the inexcusable tab our nation's leaders continue to run up and will leave for the next generation." [7]

Steering committee

As of 12 May 2017, the campaign's steering committee comprises the following members: [3]

History

The campaign was launched in late 2012 with print, digital, and outdoor advertisements and chapters across 17 states. [2] One of the campaign's primary contributors was Peter George Peterson, a billionaire investor and former chairman and CEO of Lehman Brothers. [2] Other early members included Ed Rendell, Judd Gregg, and Maya MacGuineas, who became the campaign's official spokesperson. [1] In December 2012, MacGuineas said, “We want a deal to happen, and want it to happen in a bipartisan way, because otherwise it’s not going to stick.” [8]

Over 300,000 people signed a petition demanding that policymakers fix the debt. [9] The group's influence in the corporate sector quickly grew, as early members David M. Cote, Mark Bertolini, and Larry Fink began recruiting other big business associates. [1] By November 2012, the organization's CEO Council was composed of approximately 150 executives. [1] In the financial sector, Steven Rattner and James B. Lee, Jr. became the lead recruiters. [1] The campaign proposed a July 4, 2013 deadline for a deficit reduction plan akin to the Simpson-Bowles plan, but was met with resistance at the grassroots and governmental levels. [10] In a 2013 interview with the New Hampshire Union Leader , Cote identified the problem of debt reduction in the United States as being the fact that "Washington is ruled by fear of voters ... and the three 'h's' prevail—hysteria, histrionics and hyperbole". He also framed the options for deficit reduction in terms of increases in taxes and/or spending cuts. [11]

In 2015, the campaign identified three goals in the 2016 presidential election: to incentivize candidates to create and follow through on fiscal strategies, to increase engagement with the public and the media on relevant issues, and to hold candidates responsible for statements made on fiscal policy. [12] Following the November 2016 Presidential election and going into 2017, Rattner sought to explain growing divide within the campaign and the CEO Council's shifting focus from shrinking the debt to tax cuts as not being contradictory. [13]

Criticism

The Fix the Debt campaign has been criticized since its inception for supporting corporate tax breaks while calling for cutting funds to Social Security and Medicare. [2] Kevin Connor, director of the Public Accountability Initiative, as quoted in The New York Times , identified a possible conflict of interest between the broad objectives of the group and the reality of their day to day lobbying of Washington for favorable tax treatment of their own industries and continued government spending on programs that benefit their companies. He also pointed out that the group calls for a reduction in government spending on social security but not on defence spending, a major business area for Honeywell. "It’s easier to get face time in Washington as a deficit hawk than as a corporate hack," he said, continuing "They are spending millions, but they are protecting billions in defense contracts and tax giveaways that would otherwise be on the chopping block." [14]

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The national debt of the United States is the total national debt owed by the federal government of the United States to Treasury security holders. The national debt at any point in time is the face value of the then-outstanding Treasury securities that have been issued by the Treasury and other federal agencies. The terms "national deficit" and "national surplus" usually refer to the federal government budget balance from year to year, not the cumulative amount of debt. In a deficit year the national debt increases as the government needs to borrow funds to finance the deficit, while in a surplus year the debt decreases as more money is received than spent, enabling the government to reduce the debt by buying back some Treasury securities. In general, government debt increases as a result of government spending and decreases from tax or other receipts, both of which fluctuate during the course of a fiscal year. There are two components of gross national debt:

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References

  1. 1 2 3 4 5 Roose, Kevin. "The Fixers: How Fix the Debt Won Over Wall Street and Built a Fiscal Cliff Army". Daily Intelligencer. Retrieved 28 June 2018.
  2. 1 2 3 4 Sahadi, Jeanne. "What is 'Fix the Debt?'". CNNMoney. Retrieved 19 June 2018.
  3. 1 2 "The Campaign to Fix the Debt CEO Fiscal Leadership Council" (PDF). fixthedebt.org. Retrieved 13 June 2018.
  4. ↑ "Simpson & Bowles: Debt solution must be bipartisan". USA Today. 21 September 2012. Retrieved 23 January 2020.
  5. ↑ "About the Campaign". Fix the Debt. Archived from the original on 2 April 2018. Retrieved 3 April 2018.
  6. ↑ "How to Fix the Debt Once and for All". Roll Call. 10 March 2017. Retrieved 24 January 2020.
  7. ↑ "U.S. National Debt Hits Record $22 Trillion". NPR. 13 February 2019. Retrieved 24 January 2020.
  8. ↑ "A Campaign on U.S. Debt Gains Steam". New York Times. 23 December 2012. Retrieved 24 January 2020.
  9. ↑ "We All Must Be Part of the Fiscal Cliff Solution". Baltimore Sun. 10 December 2012. Retrieved 24 January 2020.
  10. ↑ Bottari, Mary (19 February 2014). "How Pro-Austerity Groups Lost the Deficit Wars". The Nation. Retrieved 29 June 2018.
  11. ↑ "Honeywell CEO, a Manchester native, takes on deficit, Social Security crisis". Dave Solomon, New Hampshire Union Leader, 11 February 2013. Retrieved 17 March 2015.
  12. ↑ "Making the Debt a Priority in the 2016 Presidential Campaign" (PDF). fixthedebt.org. Retrieved 19 June 2018.
  13. ↑ Sorkin, Andrew Ross (21 November 2017). "C.E.O. Deficit Fears Dissolve With the Prospect of Corporate Tax Cuts". New York Times. Retrieved 29 June 2018.
  14. ↑ "Public Goals, Private Interests in Debt Campaign" Nicholas Confessore, The New York Times, 9 January 2013. Retrieved 12 March 2015.
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