How the U.S. can avoid a fiscal wreck

0 Comments | USA TODAY, March, 2008 | by David M. Walker

A growing number of people believe that we could be heading for a recession, if we are not already in one. In response, Congress has passed an economic stimulus plan, the Federal Reserve has cut the discount rate and the Bush administration has moved to try to steady the housing market.

Yet America faces much greater, and largely unaddressed, economic challenges that threaten to erode our economic strength and future standard of living. Key among them are our incredibly expensive and badly broken health care system and the upcoming retirement of the baby boomers. Both will require enormous government outlays in the years ahead.

Difficult and even unpopular choices are needed to turn things around.

What inaction will bring

In my view, we...