[Texgreen] Learn from the fall of Rome, US warned

[Roger Baker]

http://www.ft.com:80/cms/s/80fa0a2c-49ef-11dc-9ffe-0000779fd2ac.html

Learn from the fall of Rome, US warned

By Jeremy Grant in Washington

Published: August 14 2007 00:06

The US government is on a =91burning platform=92 of unsustainable =20
policies and practices with fiscal deficits, chronic healthcare =20
underfunding, immigration and overseas military commitments =20
threatening a crisis if action is not taken soon, the country=92s top =20=

government inspector has warned.

David Walker, comptroller general of the US, issued the unusually =20
downbeat assessment of his country=92s future in a report that lays out =20=

what he called =93chilling long-term simulations=94.

These include =93dramatic=94 tax rises, slashed government services and =20=

the large-scale dumping by foreign governments of holdings of US debt.

Drawing parallels with the end of the Roman empire, Mr Walker warned =20
there were =93striking similarities=94 between America=92s current =20
situation and the factors that brought down Rome, including =20
=93declining moral values and political civility at home, an over-=20
confident and over-extended military in foreign lands and fiscal =20
irresponsibility by the central government=94.

=93Sound familiar?=94 Mr Walker said. =93In my view, it=92s time to =
learn =20
from history and take steps to ensure the American Republic is the =20
first to stand the test of time.=94

Mr Walker=92s views carry weight because he is a non-partisan figure in =20=

charge of the Government Accountability Office, often described as =20
the investigative arm of the US Congress.

While most of its studies are commissioned by legislators, about 10 =20
per cent =96 such as the one containing his latest warnings =96 are =20
initiated by the comptroller general himself.

In an interview with the Financial Times, Mr Walker said he had =20
mentioned some of the issues before but now wanted to =93turn up the =20
volume=94. Some of them were too sensitive for others in government to =20=

=93have their name associated with=94.

=93I=92m trying to sound an alarm and issue a wake-up call,=94 he said. =
=93As =20
comptroller general I=92ve got an ability to look longer-range and take =20=

on issues that others may be hesitant, and in many cases may not be =20
in a position, to take on.

=93One of the concerns is obviously we are a great country but we face =20=

major sustainability challenges that we are not taking seriously =20
enough,=94 said Mr Walker, who was appointed during the Clinton =20
administration to the post, which carries a 15-year term.

The fiscal imbalance meant the US was =93on a path toward an explosion =20=

of debt=94.

=93With the looming retirement of baby boomers, spiralling healthcare =20=

costs, plummeting savings rates and increasing reliance on foreign =20
lenders, we face unprecedented fiscal risks,=94 said Mr Walker, a =20
former senior executive at PwC auditing firm.

Current US policy on education, energy, the environment, immigration =20
and Iraq also was on an =93unsustainable path=94.

=93Our very prosperity is placing greater demands on our physical =20
infrastructure. Billions of dollars will be needed to modernise =20
everything from highways and airports to water and sewage systems. =20
The recent bridge collapse in Minneapolis was a sobering wake-up call.=94

Mr Walker said he would offer to brief the would-be presidential =20
candidates next spring.

=93They need to make fiscal responsibility and inter-generational =20
equity one of their top priorities. If they do, I think we have a =20
chance to turn this around but if they don=92t, I think the risk of a =20=

serious crisis rises considerably=94.

Copyright The Financial Times Limited 2007=