Putnam Investments |
As we can all see rom this season’s intense debates in Washington, nding a way torestore our national solvency is the single most critical issue or our uture. But evenas we strive or scal sanity or our government, we should recognize that personalsolvency, grounded on strong household balance sheets and retirement savings, isequally vital. National solvency and personal solvency complement each other. Theyare both key to rebooting economic growth and sustaining America’s uture.
A dangerous, unsustainable course
Our country is at a critical inection point. We really do ace a choice between declineand renewal. The budget debates we read about and see on TV are not media hype.The stark truth is that we’re on a dangerous, unsustainable course — one that couldwreck the America we inherited. Failure is not an option. Nor are inaction, denial,or delay. Federal decits already claim a ar larger share o our economy than thato such peers in today’s global economy as the United Kingdom, France, Canada,Australia, and Germany.
Our country’s pace ofdebt accumulation isboth dangerous andunsustainable
Substantial reforms mustbe made to entitlementprograms before theydrag down our economy
We must transition toa new personal andgovernment solvencybased on higher savingsand investment
Private and publicretirement savingsprograms both play keyroles in the solution
National solvency and personal solvency complementeach other. They are both key to rebooting economicgrowth and sustaining America’s uture.
June 2011»Putnam perspectives
Reections on Nationaland Personal Solvency
Robert L. Reynolds
President and Chief Executive