The American economy is on "autopilot to destruction" due to an out-of-control federal budget, U.S. Comptroller General David Walker and representatives of three Washington think tanks said Monday at Tallahassee Community College.

The event, coordinated by the fiscally conservative Concord Coalition and hosted by U.S. Rep. Allen Boyd, D-Monticello, attracted an audience of about 150 for a two-hour discussion of the effects of entitlements and federal budget deficit spending on the economy.

On the panel with Walker were Bob Bixby, Concord Coalition executive director; Paul Cullinan of the Brookings Institution; and Brian Riedl of the Heritage Foundation.

Tallahassee is stop 30 for the Fiscal Wake-up Tour.

The program was planned to discuss challenges inherit in the federal budget, most specifically the difficulties posed by rising health costs and the Medicaid and Medicare entitlement programs.

"We're trying to spread the alarm because the American people still have an opportunity to make a difference," Bixby said.

But that window of opportunity is closing, Walker and the others noted.

Even assuming no budget deficits, with no tax increases Social Security, Medicaid, Medicare and net interest to be paid on the national debt will consume 100 percent of the federal budget by 2042, according to Riedl.

"The hole is getting deeper," Walker said. "The federal government has made tens of trillions of dollars in promises. We have five years, 10 at most, without a major economic disruption (if the problem is not addressed). I don't mean a recession. I mean something much worse."

Bixby said the first baby boomers are eligible for early Social Security retirements this month. Without a change of economic and budgetary course, the federal debt will amount to $455,000 per household by the time that wave of retirements is complete, Walker noted.

"We've got to reform our tax system," Walker said. "It's not equitable. It's not adequate."

Audience members came well armed with challenging questions.

"Where's the AARP (American Association of Retired Persons)?" asked Marsha Weaver. "They should be here. We paid for (these programs). We set aside for our retirement, and it's been taken. It's embezzlement!"

"Why do we need Social Security, Medicare and Medicaid?" Nick Crevadopoulos asked.

"How do we implement reform?" asked Terry Ward. "Do we get rid of earmarks? Do we give the president a line-item veto?"

Boyd spoke in defense of earmarking, provided it is done appropriately.

"Construction on the western portion of Capital Circle was jump-started because of an earmark," he said. "Research at Florida State on new military equipment and methods (is being done because of earmarks)."

The point of the tour, Bixby said after the meeting, is bringing bi-partisan attention to the dual problems of entitlements and deficit spending. The Wake-up Tour members advocate building public awareness of what they argue is the nation's single biggest financial problem, and increasing support for the remedies, such as raising sufficient revenues and instituting strict budget controls.

Contact Business Matters Editor Steve Liner at (850) 599-2238 or sliner@tallahassee.com