US Fiscal Health—Is There Life After Debt?

Even before the financial crisis, the federal budget had begun to deteriorate. Now, that deterioration is accelerating. Solving the budget deficit will take serious action, beyond the scope of past remedies, to turn the rising debt tide. And there are risks—of low but nontrivial probability—that the problem could worsen quickly and uncontrollably. Prudent public stewards must face up to this issue before it gradually or suddenly threatens the solvency of the United States. This report outlines the dimensions of the problem and offers solutions.