Government Accountability Office - Addressing the U.S. National Debt

America is facing a time bomb that could destroy the economy and American's standard of living. Terrorists, the environment, and the Iraq war pales in comparison to the problem facing America, yet very few candidates and elected representatives, if any, have addressed the issue this election. For the last nine years, the Government Accountability Office, GAO, has not been able to audit the financial statements presented by the U.S. government. If the problem is not addressed soon, the American national debt will spiral out of control and federal programs and pledges the U.S. government funds will cease to exist.

Every December the GAO presents their audit in a report to Congress and the American people on the financial statements the government has put together. For the past nine years, the GAO has been unable to determine if the financial statements presented by the U.S. government are true and accurate. The primary reason for this according to the report from the GAO is that the U.S. government has major material deficiencies and weaknesses in providing evidence that taxpayer's money is being spent in the way government claims. In addition, the Government was unable (or unwilling) to provide assurance that the information they present is free from misstatements or noncompliant material. Furthermore, in many cases did there was not internal controls in place that meet compliance standards within the laws and regulation of government financial reporting.

Increasing the national debt
This fiscal irresponsibility displayed by the Government is leading to more budget deficits and increased national debt. In 2005, the budget deficit was $319 billion dollars, which increased America's national debt to over $8.8 trillion dollars. The 2007 budget put to Congress for approval has a budget deficit so high it will put the national debt to over $10 trillion dollars, the highest for any country in the world. Furthermore, the U.S. government's costs of current federal activities and programs over the long term are $46 trillion dollars, four times the current GDP. With the earliest of the baby boomers set to start receiving Social Security in 2008, the U.S. government's liabilities and the national debt will continue to soar.

The effect of the government's fiscal irresponsibility
If these issues are not addressed, programs such as Medicaid, Social Security, and Medicare will become increasingly unsustainable. America's infant mortality rate is currently ranked 48th in the world and will only get worse due to lack of federal funding programs in healthcare and planned parenthood. The literacy rate is currently 55th in the world and will continue to decline if the Government does not start properly regulating funding for education. If an unforeseen event or major catastrophe were to befall America, the U.S. government's liabilities would cost each American $156,000 or each employed American $375,000 dollars to cover federally funded programs and pledges. This does not include the Iraq and Afghanistan wars or the Hurricane Katrina disaster pledges.

Becoming fiscally responsible
The GAO estimates it will take at least a generation to reverse the effects of the fiscal imbalance. The growth of the GDP and economy cannot continue to support the current fiscal policy. Unfortunately, the GAO predicts the entire federal government, including what the U.S government does and how the government does it, will need to be reviewed and revamped. One of the biggest problems noted by the GAO was the lack of proper accounting by government officials of activities shared by different areas of the government. Federal spending must not only be deemed necessary, but resources to fund these activities must first be found. Tight fiscal spending is essential and most importantly, the GAO must be able to audit the U.S. government.

Few if any candidates and elected representatives are addressing the seriousness of the issue of this current fiscal policy. Irresponsible fiscal policy, including the lack of supporting documentation and internal controls to determine who and where the taxpayers' money is being spent is leading to a downfall of the American Economy. The Congress must set up a fiscally responsible policy, which addresses government accountability and needless spending. In short, the government should be held to - at a minimum - the same standards they insist companies be held to.