Solving the deficit problem does not automatically guarantee a rosy economic future. Other developments are needed to complement a balanced budget: reduced consumption, increasing savings and investment, continued improvements in productivity, improved education, inflation and interest rates at desirable levels, and a favorable worldwide economic climate. But unless we get our deficit problem behind us, we will remain unable to take advantage of these other necessary economic ingredients.

We cannot ignore the consequences of deficits much longer. Growing commitments made by one generation to the next cannot be honored on empty pocketbooks. A stagnant long-term economy cannot support retirement payments, medical care, and all the other benefits and services we would like. And it cannot support economic opportunity for today's youth to live as well as their parents' generation.

Massive federal budget deficits threaten our economy in other ways as well. They increase the likelihood of re-igniting inflation by putting pressure on the government simply to print more money to pay off its debt. The more dollars are printed, the less each dollar in your wallet is worth.

As foreign ownership of our resources has grown, so has our dependence on the actions of foreign investors and governments. These entities have come to own more and more of our productive capacity. In addition, foreign investors have bought up over 40 percent of our government's debt held by the public. As foreign holding of U.S. debt grows, so will U.S. interest payments to foreign nationals.

Huge continual deficits strangle the ability of even a nation as rich as ours, to respond when emergencies arise or when new opportunities or problems emerge, including a recession. With our government deep in debt and continuing to run huge deficits, we may find it impossible to shoulder new responsibilities.

Ultimately, the choice rests with us. We can demand that our leaders undertake the kinds of reforms, including long-term entitlement reforms, that are needed to put the budget on a sustainable trajectory -- and face up to the required sacrifice. Or we can continue to pretend that our choices have no consequences -- and let our children pay the price in lost opportunities, lower living standards, and a less safe and secure place in the world.