The budget, trade and investment deficits, if left unchecked, could reach $41 trillion over the next ten years.
As the Congressional super committee edges up to its deadline for submitting a proposal to reduce the nation's long-term debt, what is being ignored is the fact that we have three interrelated deficits to overcome: budget, trade and investment. If we cut investments in R&D, education, and innovation in the name of fiscal austerity today, we will impede growth and set the stage for even larger budget and trade deficits tomorrow. We will not be competitive in essential sectors such as clean energy, nanotechnology, robotics and life sciences nor will we create the jobs needed to produce high-end goods for export. To be sure, there are costly subsidies and ineffective programs that Congress should pare or eliminate but adding to the investment budget will only make the budget and trade deficits worse in the long run.