An Interview With Pete Peterson

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L.G.: I know that McCain's very serious about cutting costs and stopping pork-barrel spending, but when he initially voted against the tax cuts, he didn't make a big point at the time of saying, We need spending caps, and we should have tax cuts when we reduce spending. He said this was an unfair tax benefit for the wealthy. That was his main objection.

P.P.: Oh, Lloyd, I don't frankly recall precisely what he said, but I know what he thinks, because he's talked to me about it, and I think he does think it should be linked, whether formally or informally, to spending restraints. And one of his great criticisms of the current Congress and Administration is that we've had the biggest increase in spending that we've had in decades and decades. Now back to doing something about it—I think where that starts is getting a [foundation] C.E.O. that is as good as we can find. And we've been extraordinarily fortunate. I don't know how well you know David Walker. He's comptroller general of the United States. He's as least as passionate as I am about the unsustainability of these programs. He's leaving one of the best jobs in government, having done a fabulous job and having really led the discussion on how unsustainable these problems are. Him joining this foundation is really one of the most reassuring things I could’ve ever have imagined. And his reasoning is that the problems are really serious; they really are unsustainable. We've got not too many years to fix them or they will truly explode on us. And he can do more in the private sector than he could in the government, where you're obviously restrained about taking positions and so forth. What's going to be different about what we do? I don't want to sound glib or naive about this. This is a very, very tough topic, the political problem. That's why I said it's untouchable politically. In my view, one of the things we have to do is educate and awaken the country. Starting with young people, starting with their parents. You know the old joke about the students in the philosophy class. The professor asked them, "Which is worse, ignorance or apathy?" And some kid from the back says, "I don't know, and I don't care."

L.G.: Right.

P.P.: Well, I don't want to characterize all young people that way, but too many of our young have no idea.

L.G.: I recall one young man that you told straight out: These tax cuts are unsustainable, and possibly even immoral. Of course, he was president of the United States, and he didn't listen to you—George W. Bush.

P.P.: He wouldn't be the first politician not to listen to me. But you see, we can sit around and criticize the politicians. The fact is, this is a democracy. If you're going to take tough steps, particularly in this democracy, you're going to have to have the understanding and the support of the people. At the present time, all the evidence suggests, just to take the young people: They're blissfully unaware of the magnitude of some of these challenges, and what the implications are on their payroll taxes and their economic future. They just don't know. And one of the reasons they don't know is the political leaders don't want to get in the big discussion of these subjects, as you can see from the current campaign.

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