The persistence of the Great Recession provides us with the opportunity to engage in a long overdue conversation about public investments in America's children. Less than ten percent of the Fiscal Year 2010 federal budget of $3.603 trillion is allocated to children and youth. This percentage is likely to decline in the next decade if current laws and policies remain unchanged. While state and local governments spend more on children than the federal government, especially for public education, these investments vary greatly from state to state. The fiscal fragility of governments at all levels, combined with growing disparities in family resources, points directly to the vulnerability of large numbers of America's children. At the same time, the Baby Boomer population, born between 1946 and 1964, is a very large group with increasing needs for health care and retirement benefits. This older generation will depend on the health, productivity, and well-being of the children and youth growing up today. It makes good sense to invest in our children, but how much should that be? How should a society like ours--a leading democracy with strong values of individualism and entrepreneurial effectiveness--make the tough choices about allocating public resources to each generation of Americans? How do we respect a wide range of diversity in our communities, yet share a common sense of purpose as a nation? The annual essay, "Tough Choices: Creating a New Social Contract for America" (Ruby Takanishi and Lisa Chen) included herein recommends specific policies that should be considered in the courageous conversations that must take place immediately, so that corrective actions can follow shortly thereafter. (Lists 24 resources.)