Professors, students take part in ‘responsible federal budget’ discussions

Associate Dean and business professor Dr. Shahriar Mostashari participated in a roundtable discussion on critical issues related to federal budgeting, health care, social security and taxes on Sept. 26 at the Raleigh City Club. The event was led by the Committee for a Responsible Budget, a nonpartisan, nonprofit organization based in Washington, D.C.

The following day, CRFB Senior Advisor Frank Micciche and Policy Director Chris Towner joined Stewart Group President Dee Stewart ('95, '03) for a visit to Dr. Mark Steckbeck's business philosophy classes, where the discussion centered on pressing issues of budget deficits and the national debt. During his presentation, Towner provided an overview of the 2024 budget, the existing tax gap and projections extending to 2034. He emphasized an unsustainability of the current trajectory, the socioeconomic ramifications of rising deficits and debt and the imminent political challenges facing the United States.

Towner shared a list of "debt facts" and "debt myths" with the students, outlining several potential solutions:

1. No New Debt: Offset all new spending or tax breaks to avoid exacerbating the problem.
2. Dedicated Savings: Allocate additional savings solely for deficit reduction.
3. Bipartisan Solutions: Collaborate on measures to lower health care costs.
4. Fiscal Commissions: Establish commissions to address debt and trust fund issues.
5. Comprehensive Budget Proposal: Develop a plan to put debt on a downward trajectory (referencing the CRFB Fiscal Blueprint for Reducing Debt and Inflation).

The students gained insights into the fiscal challenges facing the U.S. economy. According to the speakers, debt is projected to grow faster than the economy, potentially reaching a record share of Gross Domestic Product within three years. Additionally, they said interest payments this year are expected to exceed the costs of Medicare and defense, while the Social Security and Medicare trust funds are at risk of insolvency within the next decade.

This discussion highlighted the need for informed dialogue and proactive solutions to address these issues.

"I extend my sincere thanks to our friends at CRFB, Mr. Stewart, and Dr. Steckbeck for facilitating this invaluable experience," Mostashari said. "It is crucial for students to stay informed on this timely topic, as it deepens their understanding and sharpens their critical thinking and problem-solving skills, equipping them to better navigate the impending changes."