When the invitation showed up in the mail, we knew this was an event we couldn’t miss. The premier of the documentary film I.O.U.S.A. was to take place in downtown Omaha at the Holland Performing Arts Center and be broadcast to over 400 theaters across the country. After the film, a round table discussion featuring Warren Buffet, Pete Peterson and David Walker would provide insights into the film.

The event didn’t disappoint, our evening was spectacular on all fronts. After a brief introduction by the film’s director, the lights dimmed and my eyes opened wide in anticipation. The film clearly explained the state of our nation’s current financial crisis. It drove home the importance of not only national policy, but also personal responsibility.

I.O.U.S.A. examines the rapidly growing national debt and its consequences for the United States and its citizens. America must mend its spendthrift ways or face an economic disaster of epic proportions.

The numbers were staggering, the nation now has over $53 trillion in total liabilities, and that isn’t going anywhere soon. The nation’s budget is far from balanced, running a deficit year after year. Currently, our national dept is equal to 64% of our GDP and growing. Within 20 years, it is projected to exceed 100%.

In 2008, the Congressional Budget Office projects a deficit of $357 billion ($553 billion excluding the Social Security (surplus). That estimate reflects the impact of the economic slowdown and legislated stimulus efforts, but not pending supplemental funding for operations in Iraq, Afghanistan and other purposes that could add more than $180 billion in deficit spending over the next two years.

The federal budget should serve as the fiscal roadmap for federal policy making. However, the budget and its related process have major weaknesses when it comes both to understanding and to managing the
financial condition of the United States government. The annual budget process focuses on the immediate budget year and largely discounts the future implications of current decisions. Decision makers do not devote the same level of scrutiny to future impacts as they do to current costs.

The film’s graphics did a fantastic job of offering a clear understanding of the scope of the problem, how issues are interrelated, and where the crisis is headed. As a way of throwing the staggering number in perspective, the $53 trillion was put into more understandable numbers. They calculated the burden to:

• $175,000 per person living in the United States
• $410,000 per full-time worker
• $455,000 per household

As the film ended, citizen’s were challenged to demand that Washington policy makers begin to address these issues. Rethink our priorities. We should focus on critical societal needs and programs and policies that work. In addition, we should not assign responsibilities to the government that we personally are not willing to pay in taxes. And also recognize that there are no easy answers.

The discussion that followed the film was interesting, but also strange. One member of the audience opened with a question that made me wonder if he had even watched the film. He asked, ‘Does anyone really want to live in a world where we all exercise fiscal responsibility?’ How bazaar?

I was absolutely impressed by Pete Peterson and David Walker, but was befuddled by Omaha’s own Warren Buffet. He just came across like a booster for the US financial system. He kept rambling on about the size of the ‘pie’ in order to help the audience understand that we could count on growth and continued prosperity. He was no better than the guy who asked the opening question…did he even watch the film? The he made some statements that totally reflected the Horatio Alger Myth, implying that we can all be billionaires if we just work a little bit harder.

I was so happy to hear the thoughts of Peterson and Walker, both of whom came across as grounded and insightful. They drove home the reality of our current financial crisis and discussed the practical issues which we must face in order to slow or stop the impending disaster.

The messages of the film was just one more reminder of the importance of Simple Living and a sustainable financial life.

If you are a numbers person and want to see how the film’s data played out, click here to download the complete citizen’s guide on the Financial Condition of the US.

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