How We Can Solve the Debt Crisis. Really.

Leaders in Washington will soon have to decide whether to pursue a serious deficit-reduction agreement before the 2012 elections. Last month, Standard & Poor’s cut the outlook on the U.S.’s long-term credit rating from stable to negative for the first time since the bombing of Pearl Harbor. If we don’t change course soon, the next shot won’t be across our bow, but at our hull.

Congress’s lack of action is a major reason why I’ve spent several months meeting in an informal group called the Gang of Six with the hope of presenting a comprehensive deficit-reduction plan. We’ve made real progress, but we reached an impasse recently when it became clear the group wouldn’t agree to the kind of serious entitlement reform that would lead to a bipartisan deal.