Growing government expenditures and increasing debt have put the U.S. on the brink of an economic crisis, said David Walker, former comptroller general of the United States and president of the newly established Peter G. Peterson Foundation in New York.
"I am very worried about the future of this country," said Mr. Walker, speaking at the UJA Federation of New York's Wall Street and Financial Services Division's Banking and Finance Dinner last night.
The federal government makes up 20% of the economy, he said, a figure that he expects to climb to 30% over the next 25 years.
Americans also have become "addicted to debt," and the accumulating IOUs "may sink our ship," Mr. Walker warned.
Despite our reliance on foreign lenders, the federal government currently has a triple-A credit rating, but he questioned how long the strong credit rating will hold.
The next president must be prepared to make tough choices, impose budget constraints and overhaul the tax system, Mr. Walker said.
"If he doesn't do that, we will be in a real economic crisis," he said. "And that is unacceptable."
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