For years, Peterson, secretary of commerce under Nixon and author of Gray Down
, has been a compelling Cassandra, warning that the mix of growing debt, an aging population, and deficits in Social Security and Medicare portend disaster. Now, he laments, Republicans pursue reckless supply-side economics and Democrats, assuming a repeal of Bush's tax cuts would enable new government spending, are unwilling to consider limits on entitlements. Citing study after study, the author shows that it is a failure of leadership, not knowledge, that has let deficits loom. Beyond that, add the new burdens imposed by September 11—and the fact that European countries, aging like us, likely will have less money for security and international aid. Peterson attacks 10 partisan myths, among them that means-testing federal benefits will shred the safety net; that the elderly are poorer than children, that Americans are overtaxed and that using tax cuts to shrink government can work. What went wrong? He blames interest groups, individualism, short-termitis and generational change. Peterson offers concrete solutions: among them: index Social Security to prices, not wages; use the federal employees' health plan as a model; force Congress to include unfunded retirement obligations in its balance sheet; and pursue more nonpartisan politics, such as free TV time during campaigns. A self-described "fat cat," Peterson is willing to bear an "affluence test" for Social Security; he challenges leaders to revive JFK's call for civic responsibility. Agent, Andrew Wylie
. (July 14)
Forecast:
The punditocracy will embrace and debate this book. Though Peterson has harsh words for all, George W. Bush's opponents could seize on the charge that Bush and his Congress "have presided over the biggest, most reckless deterioration of America's finance
s in history."
