The Congress and President have been kicking the can down the road when it comes to dealing with the government’s fiscal issues. You can’t fix them in the midst of a financial crisis. But the recession is over, so back to the big problem.
The issue remaining is that the Federal government spends about 25% of GDP and brings in about 15% of GDP in revenue. 80 CEOs have signed a request asking Congress to please deal with this before it is too late. The Fed is trying to keep things chugging along with QE3 to give them time to address the issue before it hits us hard, but will Congress listen? How would you fix this?
Check out the list of CEO’s who asked Congress to deal with this problem here.