Dear Member of Congress,
As you know, the record debt that our country faces is a result of years of fiscally irresponsible behavior. The “Super Committee’s” failure to “Go Big” and find serious cuts to our budget deficit and national debt is likely to put America even closer to financial calamity. Furthermore, seniors’ and retirees’ nest eggs and retirement security are being threatened year after year with out-of-control spending, rampant inflation and dangerously low interest rates. The economic situation in America will continue to get even worse if major changes are not made.
In a CNBC interview, Warren Buffett proposed that at any time there is a deficit of more than 3 percent of GDP, all sitting members of Congress would be ineligible for re-election, which Our Generation and the Institute for Individual Investors have titled a “5 Minute Debt Solution.” The adoption of the Five Minute Debt Solution (5minutedebtpetition.com) would restore trust, confidence, and accountability and put the U.S. back on a path to prosperity.
Brazil implemented a similar policy in 2000 when its budget deficit exceeded 48.8 percent of GDP. Once Brazil adopted a Buffet-style debt ceiling law, placing the political future of political officials at stake, the deficit dropped to 37 percent of the GDP. And today, Brazil runs at a surplus. Additionally, Brazil’s Buffet-style law restored confidence in the government’s ability to manage its finances and the economy.
Using the Brazil law as an example, 5 Minute Debt Solution supports an institutional change for Congress, by placing limits on the amount of time a member can serve in Congress when budget deficits are more than 3 percent of GDP. This is an institutional change that Congress should adopt immediately. Congress can no longer ignore the difficult decisions facing our country, the most important of which is excessive spending which has brought our country to its knees.
Our Generation is a non-partisan, nonprofit grassroots citizens group, dedicated to improving the lives of senior citizens through awareness and advocacy. I hope you find the above information useful and consider our viewpoints as you continue to serve in the U.S. Congress.