Transforming Government: To Thrive, Not Just Survive, in Changing Times

This is a Comptroller General Speech given to the Diamond Cluster Exchange in Kiawah Island, South Carolina, on September 19, 2005. Today, more than ever, our nation and government need to start planning for a range of societal changes that we know are coming. We need to start stepping up to the plate and making difficult decisions aimed at securing our collective future. What's at stake is nothing less than America's continuing role as a superpower, our continuing economic growth, the future quality of life for our children and grandchildren, and the future security of our nation. We face a number of important long-term demographic changes. For example, during the next 50 years, the ratio of workers to retirees is expected to decline dramatically. Like most industrialized nations, the United States now faces the prospect of fewer relative active workers caring for more retirees with longer life spans. The retirement of the "baby boomers," of which I am one, will place unprecedented strains on both our public and private pension and health care systems. Beyond these demographic trends, the United States confronts emerging challenges in other areas. Our world is being shaped by forces that aren't restricted by national borders or natural boundaries. We're seeing increasing globalization in many areas, including markets, technologies, and businesses. The fortunes of once-distant economies are now linked, and global communications are now virtually instantaneous. Environmental and public health issues are also global in scope. As you can imagine, air and water pollution don't just stop at the border. And with today's international air travel, infectious diseases can spread from one continent to another literally overnight. This is one reason experts are so concerned about avian flu. With the end of the Cold War, we face new security threats, including transnational terrorist networks and rogue nations armed with weapons of mass destruction. These require multi-national cooperation in order to be successful. We face technological innovations that have transformed everything from how we do business to how we treat and cure diseases. Our society has moved from the industrial age to the information age, where specialized knowledge and skills are the keys to success. Unfortunately, the United States is number 25 in the world on K through12 education results. This should be a big flashing red light in today's knowledge-based economy. We also face a range of quality-of-life issues, from educating our people to protecting the environment to balancing the demands of work and family. We and other nations also face growing energy challenges with significant economic, environmental, and security implications. And recent events have underscored the importance of being prepared for both natural and man-made disasters. But perhaps the most urgent yet lesser known challenge is our nation's worsening financial condition and growing long-term fiscal imbalance. Largely due to the aging of the baby boomers, rising health care costs, and relatively low federal revenues as a percentage of the economy, America faces a rising tide of red ink. The government's recent spending binges and tax cuts have combined to hemorrhage our bottom line. At the same time, much of our nation's fiscal policy remains on autopilot, a strategy that is both imprudent and unsustainable. Government continues to expand, with new federal programs and initiatives added every year to a base that continues to grow. Importantly, we rarely seem to question the wisdom of existing federal commitments.